Understanding your pay statement

Your pay statement will show how much you get paid, how often you get paid and give you information about deductions from your pay. It is an important document and you should keep it in a safe place. You may need it if you need to claim state benefits or you want to make a claim for overpaid tax.

Pay statements

Each month JPAC will produce a statement of your pay giving details of on-going and one-off entitlements and deductions. See below for an example of a pay statement. Hard copy pay statements should be given to you by the end of the month for the main pay run and within a few days if you are receiving supplementary pay. If you are unable to obtain your pay statement due to Service reasons and you do not have the ability to access an electronic verson, you may ask for a hard copy to be sent to your private address.

You should note that your pay statement can run to two or more pages - make sure you are reading the whole statement.

Electronic pay statements

Electronic pay statements will be available on-line to you and Unit HR admin staff immediately following the monthly and supplementary pay runs.

Pay and allowances

The pay and allowances box on the left of your pay statement (see 6 below) shows your basic pay and allowances before any deductions are made. You shoud check this box carefully and make sure you are receiving what you should, and just importantly, you are not receiving any allowances that you are not entitled to. The pay office will recover any allowances paid in error, which can be a shock.

You should also check your deductions and make sure that you are being deducted the correct amount. If there is anything you do not understand or you think there might be an error, you should contact your unit HR. Find out more about Tax and National Insurance deductions.

Maximum deductions

There is a minimum amount that you can be left with after compulsory deductions have been made from your pay. This is called the Minimum Drawing Rate (MDR).

minimum drawing rate

You must be left with half of your net pay after compulsory deductions have been made

The MDR is 50%. This means that you must be left with half of your net pay after compulsory deductions have been made.

Net pay for this purpose is calculated as gross pay (excluding allowances) less Income Tax, National Insurance, Maternity Pay, Statutory Adoption Pay or Statutory Maternity Pay.

If you wish to have voluntary deductions from your pay which will leave you with less than 50% of your net pay you should talk to your Unit HR.

The compulsory deductions which will be taken into account when calculating the  MDR, and the order in which they will be deducted, are:

  • Child maintenance order
  • County or other court judgement or order
  • Repayment of amounts paid by your Service to pay a criminal fine on your behalf
  • Compensation for damage or loss to public or Service property
  • Payments towards a Service generated fine
  • Maintenance order for a spouse, civil partner or child
  • Advances of pay
  • Taxable overpayment of pay and allowances
  • Non-taxable overpayment of pay and allowances
  • Undercharges
  • Miscellaneous deductions
  • Long Service Advance of Pay

P60

At the end of each financial year (the financial year runs from 6th April to 5th April in the following year) JPAC will produce an annual certificate of pay and tax deducted. This is known as a P60.

Money fitness tip

Keep your P60 in a safe place - it is proof of how much tax you have paid.

 It will show your total pay for the year and total tax deducted and National Insurance contributions made in the year. You should keep this document in a safe place.

Your pay statement

  1. Pay spine and level on spine
  2. Tax code
  3. Gross pay for the month
  4. Total deductions from pay for the month
  5. Net pay for the month - amount paid into your bank account
  6. Breakdown of gross pay = basic pay + allowances
  7. Breakdown of deductions - PAYE (tax), National Insurance, Payroll giving, dependent's fund payment, accommodation charge, CILOCT (Contribution in lieu of Council Tax), HDT (Home to duty) contribution, other deductions
  8. Total of pay and tax paid in this tax year
  9. Pay information - Annual Salary, IBD (Incremental base date), AIP (Accelerated incremental pay) awards available, amount of CILOCT, accommodation type
Payslip

Last reviewed: 19/09/2017