How to read my payslip

Navigating your payslip can be confusing, especially if you’re new to the workforce or just started with a new payroll system. This guide will walk you through the key elements of a payslip, so you can understand exactly how your earnings are calculated, where your money goes, and what to look out for.

Understanding your payslip

Basic information

Your payslip typically starts with your personal information, including your name, employee number, and the pay period. This section also shows your employee details.

Earnings

This section breaks down your gross income, showing what you’ve earned before any deductions. It includes:

• Base Pay: your regular earnings for the hours you’ve worked or your salary. 
• Overtime: any additional pay for hours worked beyond your normal schedule.
• Bonuses/Commissions: if applicable, these will be listed separately.

Deductions

Here’s where you see the amount and details of each deduction taken out of your gross pay,  such as:

• Taxes
• Other deductions (health insurance, union fees, etc.)

Superannuation contributions

In Australia, your employer is required to contribute to your superannuation fund on your behalf. Your payslip will show the amount your employer has contributed during the pay period, helping you track your retirement savings.

Net pay

This is the amount you take home after all deductions - your “take-home pay”.

Leave balances

If your employer tracks leave, your payslip might include your remaining leave balances, such as annual leave, sick leave, or personal leave.

Year-to-date total(YTD)

This section summarises your earnings and deductions for the year so far. It helps you see how much you’ve made and how much has been withheld for taxes, superannuation, and other purposes. 

Why understanding your payslip matters

Knowing how to read your payslip is crucial for ensuring you’re being paid correctly and understanding where your money is going. By regularly reviewing your payslip, you can catch any errors early, whether it’s a missed overtime payment, incorrect superannuation contribution, or an unexpected deduction. 

How Microkeeper makes it easy

For employees of companies using Microkeeper, accessing and understanding your payslip is straightforward. Our platform offers a clear, easy-to-read layout with all the necessary details available at a glance. Plus, with our self-service-portal, you can access your payslip anytime, anywhere, making it easier to stay on top of your finances. 

‍

Understanding your payslip doesn’t have to be complicated. By familiarising yourself with its components, you can take control of your finances and ensure everything is in order. Whether you’re a new employee or just need a refresher, knowing how to read your payslip is an essential skill for managing your earnings effectively.