Skip to content
LexSalim
Payroll and payslips

Earnings and deductions explained

The lines that appear on a payslip: the kinds of earnings that make up gross pay and the kinds of deductions that reduce it to net pay.

Updated 13 October 2026

Free forever. Payroll calculations, payslip generation and PDF downloads in LexSalim are free for individuals, employers and small businesses. No subscription, no checkout and no hidden payroll charge.

Availability. The generator is not yet live on lexsalim.com. United Kingdom support is in development; United States and Canada are planned.

A payslip is built from two columns: what was earned and what was deducted. This article explains the common lines in each so that you can read a payslip, or prepare one, with confidence. Which lines appear, and how they are calculated, depends on the country and the employer.

Earnings lines

Line What it usually means
Basic pay Salary for the period, or hours worked × hourly rate
Overtime Extra hours, often at a higher rate agreed in the contract
Bonus / commission Variable pay for the period
Allowances Fixed additions such as a shift or travel allowance, where taxable
Statutory pay Sick, maternity, paternity or similar pay routed through payroll, where it applies
Holiday pay Pay for leave taken, where shown separately
Back pay / adjustments Corrections for earlier periods

The total of the earnings lines is the gross pay.

Deduction lines

Line What it usually means
Income tax Tax withheld by the employer under the country's pay-as-you-earn system (PAYE in the UK; federal and state withholding in the US; federal and provincial tax in Canada)
Social contributions National Insurance (UK); Social Security and Medicare, together called FICA (US); CPP or QPP and EI (Canada)
Pension The employee's own contribution to a workplace or personal pension, where one is set up
Student loan or similar Repayments collected through payroll in some countries
Other agreed deductions Union fees, salary-sacrifice arrangements, repayment of advances
Ordered deductions Amounts an employer must deduct under a court or authority order

The total of the deduction lines, taken from gross pay, gives the net pay.

Information lines

Some payslips also show figures that are neither earned nor deducted: employer contributions (the employer's National Insurance or pension contribution, for example), year-to-date totals, and the identifiers the employer uses to apply the right rules (a UK tax code, for instance). They help the employee check the calculation.

In the free generator

When the generator opens, earnings and agreed deductions are entered by you; statutory deductions are calculated by the selected country's verified rule pack and shown for review. The generator never asks for a National Insurance, Social Security or Social Insurance number, and never asks for bank details. Rates, bands and thresholds are not stated in this help centre because they change each tax year; the official source for your country is authoritative.

Was this helpful?

If something is unclear or missing, tell us and a person will reply. Please do not include case documents or financial records.