Changes to the law on payslips

From 6 April 2019 your business will have to give every worker on its payroll (not just employees) an itemised pay statement (i.e. payslip) and some new information must be provided. This is because the Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) (No.2) Order 2018 comes into force.

So Whats happening?

It will extend the statutory right to receive an itemised pay statement (i.e. payslip) to all workers (only employees have the statutory right at the moment), so from 6 April 2019 employers will have to provide everyone (i.e. zero-hours contract workers and contractors) on their payroll with an itemised pay statement (i.e, payslip).

New Information requested to be shown on the payslip

From 6 April 2019 additional information must also be given where a worker’s pay varies depending on the number of house they have worked, e.g someone with a fixed monthly salary works variable overtime with additional pay. In this situation, the payslip should state the number of house worked for which the individual is being paid. This can be given as a single combined amount or as an itemised list of houses worked and the different rates of pay.

Currently a payslip must give the recipient the following information:

  • The gross amount of their wages or salary being paid
  • The amounts of any variable or fixed deductions from the gross amount
  • The reasons for the deductions made (e.g National Insurance contribution; Income Tax; Pension; Attachment of earnings, etc)
  • The net amount of their wages or salary payable
  • Where different parts of the net amounts are paid in different ways, the amount and method of each part of the payment.

For more information see HMRC gudiance


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