From gross to net
Two numbers matter first
Your payslip has two headline numbers. Gross pay is what your employer pays for you. Net pay is what lands in your account. The gap between them is tax and deductions.
What sits in the gap
Common deductions are income tax, provident fund or social security contributions, and any insurance your employer routes through payroll. Every line should be identifiable. If one is not, ask HR. A line you cannot name is a line you cannot check.
- Income tax, at the rate your bracket or tax code sets.
- Retirement contributions: provident fund, 401(k), pension, CPF or superannuation, depending on where you live.
- Insurance your employer deducts, usually health.
- Occasionally a loan repayment, a season-ticket scheme or a salary-sacrifice arrangement.
Check your bracket once a year
Get your tax bracket or tax code wrong and you overpay quietly for months. Once a year, compare the code on the payslip with what your tax authority says it should be. It takes ten minutes and it is the single most common payslip error.
Keep every one
You will need payslips for loans, visas and rental applications sooner than you think. The Documents vault has a Work category for exactly this. Add an expiry if the document has one and Grownz reminds you before it lapses.
What this unlocks
Setting your profile and base currency, then logging a first expense, are the two milestones that move a household from First Job to Getting Stable. The payslip is where both start.
