Starting a new job is exciting! A new venture and some cash coming into your bank account. Keep an eye on your pay slip to make sure you’re being paid what you should. It’s your money, after all!

What's a pay slip?

Your pay slip outlines what you’ve earned in the period as well as anything that has been taken out (deductions).

The Fair Work Act 2009 mandates that every employer must provide a payslip to employees within one day of their pay day.

What’s so important about a pay slip?

It’s your money so it’s important to understand the information and ensure that you’ve been paid accurately. Use it to keep track of your income, what deductions have been taken out and other information such as annual leave and superannuation contributions.

Understanding how much you earn helps you to plan on mindfully spending and actively saving.

1. Your details and your employer's details (A)

These are the basics! It shows that the pay slip is for you from your employer.

• Your employer's name and ABN.

• Your name. (B)

• The dates for the pay period. (C)

• The date they sent your pay. (D)

2. What you’ve earned

This shows how much money you've earned before any tax or other deductions.

You will see:

• Gross (meaning before anything is taken out) wages or salary. (E)

• Hourly rate (if applicable) x number of hours worked. (F)

• Annual salary (if applicable).

• Overtime and its rate.

• Any loadings, bonuses, allowances or commissions. (G)

3. Deductions – what’s been taken out

It would be amazing if our gross pay was the amount that hit our bank accounts every pay week! However, the amount we end up getting paid is the gross amount minus any deductions and these are listed on your payslip.

Common deductions include:

• Income tax. Learn more at ATO^ Income Tax Rates for Individuals.

• Your student loan repayments (HECS / HELP) once your income reaches the minimum threshold. You can find more information by visiting ATO^ HECS / HELP Repayment thresholds.

4. Superannuation

This is the amount your employer has contributed to your superannuation fund. Employers are required to pay 11% of your salary as superannuation. Login to your superannuation fund regularly and check that these amounts are in fact in your superannuation account.

5. Net pay – what hits your account at the end of the day

Net pay is the amount that lands in your bank account.

_{* Note: This is a simplified guide. For a detailed breakdown, always refer to the official resources provided by the Fair Work Ombudsman.}

_{^ Australian Taxation Office.}