If you’ve started work, you’ll need to know how to understand your wage slip. Here are the basics on what you should be earning, and what you’ll have to pay out.
National minimum wage
There is a national minimum for wages in the UK, and it is illegal for employers to pay less than this amount.
Age Entitlement
Up to 18 years £3.57
18 – 22 years £4.83
22 and over £5.80
There are some jobs where the minimum wage doesn’t apply. For example, if you’re a first year apprentice, under 16 or working on a farm. If you think you’re not being paid properly, Connexions can give you advice on what to do.
Tax and insurance
Wherever there’s money, there are taxes. The government use income tax and National Insurance to pay for public services like healthcare. Your new employer should give you a P46. This will tell the tax office how much you’re earning, and help them issue you with a Pay As You Earn code (PAYE). Send this form as soon as you can, or you might end up paying too much.
The amount you earn before tax is your 'gross salary'. The amount you get after tax and National Insurance has been deducted is your 'net salary'. When you get a payslip, you'll see:
• the gross salary you've earned including bonuses
• how much Income Tax has been deducted
• any NI that has been deducted
• any student loan repayments
• your take home pay
If you’re 16 you should have received a National Insurance number. If you haven’t, or you’ve lost the card it is printed on, call the NI Registration Helpline on 0845 915 7006.
LET US HELP
Our Personal Advisers are here help with everything from taxing tax forms to understanding your wage slip. You don’t need to make an appointment – just drop into your local Connexions or give us a call today.