Wages, Tax and NI
Starting a new job? Unclear about tax? Problems getting paid? This section looks at what happens to your money when you get paid.
Wages
Some people are paid weekly. Others are paid monthly. Your employer should give you a clear statement of what your pay will be.
Pay Slip
Whether you are paid in cash or directly into to your bank account, you should receive a 'payslip' showing how much you’ve earned and what has been taken out for tax and National Insurance.
It's worth keeping your payslips for at least a year, in case you need to refer back to them.
Holiday and Sick Pay
All workers have a right to 28 days paid holiday if you work full time.
Most workers qualify for Statutory Sick Pay (SSP)
You can find out more about holiday entitlement and sick pay on the Direct.gov website. Find out about other pay rights from the Worksmart website
Minimum Wage
Currently the minimum wage is:
- £3.68 an hour for 16 and 17 year olds (not including apprentices),
- £4.98 an hour for 18-20 year olds, and £6.08 an hour for adults aged 21 or above.
- £2.60 an hour for apprentices under 19, and those 19 and over who are in their first year of their apprenticeship.
Ring the Pay and Work Rights Helpline on 0800 917 2368 if you think you are being underpaid.
Tax
Income Tax is usually taken out of your wages by the government to pay for services such as health, education etc. Find out more about tax on the Direct.gov website.
Students and tax
If you're thinking of working during the holidays while you are a student and are unlikely to earn enough to need to pay tax, you can fill in a P38(s) form so that tax is not deducted from your pay.
Find out more on the Student Tax Advice website.
National insurance
National Insurance (NI) contributions are taken out of your wages to build up your entitlement to certain state benefits, including your pension.
NI Number
You should get a NI card showing your NI number just before you become 16.
If you haven’t been sent a NI card, or you’ve lost it, call the National Insurance Registrations Helpline on 0845 915 7006.
Find out more about National Insurance from the Direct.gov website
