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UK Payslip Glossary

Every term you might see on a UK payslip, explained in plain English. 97 entries, updated for the 2026/27 tax year.

A

Agency WorkerEmployment
A worker placed at a client by a recruitment agency, paid by the agency or an umbrella company. Full definition
ArrearsEmployment
Back-pay owed from an earlier period and taxed when it is finally paid. Full definition

B

BonusEmployment
An extra payment fully taxed and NI-charged in the period it is paid. Full definition

C

CommissionEmployment
Performance-linked pay treated as ordinary earnings for PAYE and NI. Full definition

G

Gross PayEmployment
Total earnings before any tax, NI, or other deduction is taken. Full definition

H

Holiday PayEmployment
Pay received while on annual leave, at your normal rate. Full definition

L

Lieu Days / TOILEmployment
Time Off In Lieu - paid time off given instead of overtime pay. Full definition

N

National Living Wage (NLW)Employment
The legal minimum hourly rate for workers aged 21+, £12.21 for 2026/27. Full definition
National Minimum Wage (NMW)Employment
Age-banded legal minimum hourly rates for workers under 21 and apprentices. Full definition
Net PayEmployment
The take-home figure paid into your bank account after all deductions. Full definition

O

OvertimeEmployment
Hours worked above contracted hours, often paid at a premium rate. Full definition

P

Pay PeriodEmployment
The interval - weekly, fortnightly, four-weekly or monthly - covered by one payslip. Full definition

T

TUPE TransferEmployment
Rules that protect employees' jobs and terms when their employer changes through a business transfer or service provision change. Full definition

U

Umbrella CompanyEmployment
A payroll intermediary that employs contractors and runs PAYE for them. Full definition

Y

YTD (Year to Date)Employment
Running totals since 6 April for pay, tax, NI and other items. Full definition

Z

Zero-Hours ContractEmployment
A contract with no guaranteed hours but full holiday and minimum wage rights. Full definition