Understanding Your Payslip

Payslips contain a wealth of information we should all be able to understand but are rarely taught about. Here's what you should be looking for, writes Gugulethu Mhlungu.

- Gugulethu Mhlungu

Many of us are guilty of not looking at or understanding our payslips in the way that we should, and admittedly, no one wants to keep looking at how little they’re earning. However, understanding your payslip can save you a great deal of time, money and trouble in the future.

IMPORTANT INFORMATION

Human resources manager in the accounting sector, Nazreen Khan says: “People generally avoid dealing with financial matters because they think they are too confusing and also assume that the employer is taking care of everything. However, that only means many people have no idea of what’s happening in their financial lives and only find out when something goes wrong. Payslips are a way for the employee to keep track of whether what was agreed upon with the employer is still happening.” Nazreen says information that should appear on your payslip includes the following:

1. Your position, employee number and department.

2. Nature of your appointment (e.g. permanent, fixed contract).

3. Gross monthly income or earnings, and this can include bonuses and allowances.

4. Income tax number.

5. Deductions such as income tax, Unemployment Insurance Fund (UIF), medical aid and other deductions such as garnishee order payments, union premiums and monies owed to the employer.

6. Your Nett pay – what is paid to you after all deductions.

7. Taxable earnings and tax paid on those earnings in the financial year to date.

8. Leave balances (annual, sick, family etc.).