Every employee receives a payroll together with their salary. It provides an overview of how many hours you worked, your gross salary and net salary, and what deductions were taken from your pay.

If you work, for example, in manufacturing, logistics, or a warehouse, your payslip can help you check whether your overtime, wage supplements for weekend or holiday shifts, or vacation days have been calculated correctly.

In this article, we will explain:

• what a payroll is

• how to read the individual items on it

• the difference between gross and net salary

• what to look out for when checking your pay

What Is a Payroll?

A payroll or a payslip is a summary of your salary for a specific period, most often a calendar month. The employer provides it to the employee as a document showing how the salary was calculated.

A paysroll typically includes:

• hours worked

• basic salary

• wage supplements for shifts or overtime

• social and health insurance contributions

• advance income tax payment

• final net salary

The payroll therefore serves as a way to verify that the salary has been calculated correctly.

What Information You Can Find on a Payroll

Although companies may use different formats, most payslips contain similar information.

Employee Details

These details are used to identify the employee and the pay period. At the beginning of the payslip, you will usually find:

• employee name

• employee ID number

• employer name

• the period for which the salary is paid

• job position or type of employment

Working Time

Another section of the payslip shows information about working hours, such as:

• number of hours worked

• overtime

• work on public holidays

• night work

• vacation

What Does a Payroll Look Like?

If you would like a better idea of what a payslip looks like and where to find individual salary details, you can look at a specific example of a payslip with explanations of each item. Click here to view the example.

payslip

The Difference Between Basic, Gross, and Net Salary

You will usually see three different types of salary on a payslip.

Basic Salary

The basic salary is the amount stated in the employment contract or salary assessment.

It forms the basis for calculating the total pay.

Gross Salary

Gross salary includes:

• basic salary

• wage supplements

• premiums

• bonuses

From this amount, the following deductions are still made:

• social insurance

• health insurance

• income tax

Net Salary

Net salary is the amount you actually receive in your bank account.

It is calculated by subtracting the following from the gross salary:

• income tax

• social insurance

• health insurance

• any additional deductions

How to Check Your Payroll

It is a good idea to review your payslip every month. This can help you identify any possible mistakes.

When checking it, focus mainly on:

1. Number of Hours Worked

Check whether the number of hours matches your attendance.

2. Shift Supplements

In shift operations, the following should be included, for example:

• night shifts

• work on public holidays

• weekend work

3. Overtime

Overtime should correspond to the actual number of hours worked.

4. Vacation

The payslip often also shows:

• how much vacation you have used

• how many vacation days you have remaining

What the Abbreviations on a Payroll Mean

Payslips often contain abbreviations that may vary slightly between companies.

When Must an Employer Provide a Payroll?

An employer should provide the employee with a payslip no later than the end of the following month after the salary has been paid.

Payslips can be delivered in different ways, for example:

• in paper form

• electronically (for example by email or through an employee portal)

The Most Common Payroll Errors

Errors on payslips are not common, but they can occur. If you notice any discrepancies, contact your payroll or HR Departments.

Typical issues include:

• incorrectly calculated overtime

• missing shift supplements

• incorrect number of hours worked

• incorrectly applied tax relief

Why You Should Keep Your Payroll

A payslip is an important document that may be required, for example, when applying for a mortgage or loan, proving your income, or calculating your pension. For this reason, it is recommended to archive your payslips.

FAQ: Frequently Asked Questions About Payrolls

How can I check whether my salary is correct?

You can verify your salary by comparing your payslip with your attendance records, the number of hours worked, and any wage supplements for shifts or overtime.

Does an employer have to give employees a payroll?

Yes. An employer is required to provide the employee with a summary of the salary calculation, meaning a payslip.

What is a payslip? What is a payroll?

A payslip is a document that contains a summary of an employee’s salary, working hours, and deductions for social and health insurance.

What does gross salary mean?

Gross salary is the employee’s total salary before taxes and other deductions are taken out.

What should I do if my payslip is incorrect?

If you find an error on your payslip, contact the employer’s payroll accountant or HR department.

How often do I receive a payroll?

Employees should receive a payslip every time they are paid their salary, which is usually once a month.

What is a tax credit on a payroll?

A tax credit is an amount that reduces the employee’s income tax. The most common one is the basic taxpayer credit, which can be applied by every employee.