Ask PayslipIQ · Last reviewed 2026-05-08
What does payroll giving mean on my payslip?
Payroll giving is a way to donate to charity directly from your gross pay. The donation is taken before tax, so you save income tax at your marginal rate. You do not save NI. The line on your payslip is normally labelled Payroll Giving or GAYE (Give As You Earn).
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.
Because the donation comes from gross pay, the cost to you is lower than the headline donation amount. A £10 donation costs you £8 if you are a basic-rate taxpayer, £6 at higher rate, and £5.50 at additional rate.
If you are a higher-rate taxpayer who already gives to charity by Gift Aid, payroll giving can be more efficient because the relief is automatic and at your full marginal rate.
Setting it up requires your employer to use an HMRC-approved payroll giving agency. If yours does not, you can suggest it. Many large employers already participate.
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Reviewed by PayslipIQ Editorial. Sources cited where applicable.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.