GUIDE — PAYSLIP CODES
Payslip abbreviations explained
Payslips are not written in a standard language. Employers and payroll software choose their own abbreviations, and the same three letters can mean different things at different employers. This page covers the codes you will see most often, and how to check the ones that are not obvious.
Last updated 22 October 2026. Official sources checked 22 October 2026.
The four that matter most
| Code | Usually means | What to check |
|---|---|---|
| Gross | Pay before deductions | Basic pay plus overtime, premiums, holiday pay and any other pay. |
| Net | Pay after deductions | Gross minus tax, National Insurance, pension, student loan and any other deduction. |
| PAYE | Pay As You Earn — usually the Income Tax line | The tax code it was calculated with, and the taxable gross it was applied to. |
| NI / NIC | National Insurance contributions | The earnings band, and whether the line is EE (yours) or ER (employer's). |
Pay and hours codes
| Code | Usually means |
|---|---|
| BASIC / BSC | Basic pay at your normal hourly rate. |
| OT / O/T | Overtime, usually with the multiplier or rate on the same line. |
| BH | Bank holiday hours or bank holiday premium. |
| HOL / HOLS / HOL PAY | Holiday pay. |
| TOIL | Time off in lieu — hours taken back instead of paid overtime. |
| SSP | Statutory Sick Pay. |
| SMP | Statutory Maternity Pay. |
| SPP | Statutory Paternity Pay. |
| ShPP | Statutory Shared Parental Pay. |
| SAP | Statutory Adoption Pay. |
| SPBP | Statutory Parental Bereavement Pay. |
| HRS / HRS WKD | Hours worked in the pay period. |
| WK / MTH | Weekly or monthly pay period. |
Statutory pay codes vary between payroll systems. A newer code such as SNCP may mean Statutory Neonatal Care Pay. If a code starts with S and you are not sure, ask payroll which statutory payment it is.
Deduction codes
| Code | Usually means | What to check |
|---|---|---|
| TAX / PAYE / IT | Income Tax | Tax code and taxable pay. |
| NI / NIC / EE NI | Your National Insurance | Category letter and earnings band. |
| ER NI | Employer's National Insurance | Not deducted from your pay; shown as an employer cost. |
| PEN / PENS / EE PEN | Your pension contribution | Percentage or amount, and whether tax relief is included. |
| ER PEN | Employer's pension contribution | Not deducted from your pay. |
| SAL SAC | Salary sacrifice | The sacrificed amount and what it is for (pension, cycle scheme, car). |
| SL / STU LOAN | Student loan repayment | The plan (1, 2, 4 or 5) and the threshold used. |
| AEO | Attachment of Earnings Order | The court order reference and the protected earnings rate. |
| DEA | Direct Earnings Attachment | A DWP deduction; check the reference and amount. |
| CMS / CSA | Child maintenance | The case reference and whether it is a fixed or percentage deduction. |
| DED | A generic deduction | Ask what it is for; “DED” on its own explains nothing. |
| UNION / SUB | Union subscription | The amount and frequency you agreed. |
| GAYE / CHARITY | Give As You Earn donation | The charity and amount. |
Tax code letters
The number in a tax code is your tax-free allowance for the year, with the last digit replaced by a letter. 1257L is the standard code for most people with one job or pension. The letters change what the number means:
| Code | What it means |
|---|---|
| L | You get the standard tax-free Personal Allowance. |
| M / N | Marriage Allowance: you receive (M) or transfer (N) 10% of your partner's allowance. |
| BR | All income from this job is taxed at the basic rate — common with a second job or pension. |
| D0 / D1 | All income from this job is taxed at the higher (D0) or additional (D1) rate. |
| NT | No tax is taken from this income. |
| 0T | Your allowance is used up, or your employer does not yet have the details to give you one. |
| K | You have untaxed income worth more than your allowance; tax is added to your pay rather than taken from an allowance. |
| W1 / M1 | Emergency tax basis: each payday is taxed on its own, without the year-to-date adjustment. |
| S / C | Scottish (S) or Welsh (C) rates — the prefix changes the rates used. |
HMRC explains the full list in What your tax code means. If the code looks wrong, check it in your HMRC online account before assuming the payroll is wrong.
Year-to-date and pay-period codes
- YTD — year to date. The running total for the tax year, which starts on 6 April, not 1 January.
- Tax week / tax month — the week or month number used by PAYE, which can differ from the calendar week or month.
- BACS — the payment was sent by bank transfer, usually arriving on the pay date.
- PAYE REF — the employer's PAYE reference, not yours.
- NI number — your National Insurance number, used to match tax and contributions to you.
Why employers are allowed to use codes
The law does not prescribe a list of words. The Employment Rights Act 1996 requires an itemised pay statement, and GOV.UK summarises what it must show: earnings before and after deductions, the amount of deductions that may change each time (such as tax and National Insurance), and the number of hours worked if pay varies with time worked.
Fixed deductions, such as a season ticket loan repayment, can be explained in a separate written statement instead of on the payslip, as long as the statement is given before the first payslip and updated each year. The key point is that the amount and purpose must be clear. An abbreviation is fine if the purpose is obvious or explained; it is not fine if nobody can tell what the money was taken for.
If you do not recognise a deduction
- Ask payroll in writing what the code stands for, how the amount was worked out, and whether it is a one-off or recurring.
- Compare it with your contract, your previous payslips and any letter or email you were sent about it.
- Check the arithmetic: gross minus the deductions should equal net. If it does not, ask for a reconciliation.
- If it is still unexplained, ACAS can explain your options. A deduction that is not authorised by your contract or by law is a serious issue, so keep the payslip and the reply.
This page explains common codes, not your contract or your tax position. Your payslip and HMRC are the official record. For advice on a specific deduction, contact ACAS or your payroll team.
Check the hours, not just the money
A payslip can use the right codes and still be wrong about the hours. Since April 2019, employers must show the number of hours worked where pay varies with time worked. If your hours are missing or do not match your shifts, the free payslip hours checker compares a payslip with your logged shifts, and the line-by-line guide shows how to check each rate.
Questions
What does PAYE mean on a payslip?
PAYE means Pay As You Earn. It is the system your employer uses to deduct Income Tax and National Insurance from your pay and send it to HMRC. On a payslip, PAYE usually labels the Income Tax line, not a separate tax.
What does EE and ER mean on a payslip?
EE means employee and ER means employer. You will usually see EE next to National Insurance or pension contributions deducted from your pay, and ER next to the employer's own contribution, which is not taken out of your pay.
What does YTD mean?
YTD means year to date. It is the running total for the tax year, which starts on 6 April, not for the calendar year. YTD figures are useful for checking that tax and National Insurance are adding up correctly across payslips.
Can an employer use abbreviations instead of full names?
Yes, there is no prescribed list of words. The law requires an itemised statement showing gross pay, net pay, the amount of deductions that vary and the purpose of each deduction. If an abbreviation does not make the purpose clear, ask payroll to explain it in writing.