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 GOV.UK website. Find out about other pay rights from the Worksmart website
Minimum Wage
The minimum wage varies according to your age and whether you are doing an apprenticeship:
| 21 and over | 18 to 20 | Under 18 | Apprentice* | |
|---|---|---|---|---|
| Rate until 30 September 2013 | £6.19 | £4.98 | £3.68 | £2.65 |
| Rate from 1 October 2013 | £6.31 | £5.03 | £3.72 | £2.68 |
*This rate is for apprentices under 19 or those in their first year of their apprenticeship. If you are 19 or over and past your first year you get the rate that applies to your age.
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 GOV.UK website
Students and tax
If you're thinking of working during the holidays or weekends 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 GOV.UK 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 GOV.UK website
Page last updated 18/04/13
