TIP: You can also find further information from the guidance published by The Department for Business, Energy & Industrial Strategy (BEIS).

A salaried employee with no variable pay

Your employee works a set amount of hours per week and earns a basic salary per year. The role requires no overtime and your employee only works the contracted set amount of hours per week.

As their pay doesn't vary by the number of hours, you don't have to show any hours worked on the employee's payslip.

A salaried employee with additional variable pay

Your employee works set amount of hours per week and earns a basic salary per year. The role requires the employee to sometimes stay late or come in at weekends due to work load.

You pay the employee an additional hourly overtime rate for any hours worked outside the basic set amount of hours per week.

You don't need to show the basic hours for their salary as this doesn't vary based on the hours worked. However, you must show the number of hours worked as overtime and it is the figure of hours you must include on the payslip.

EXAMPLE: They work 35 hours per week and have done 10 hours overtime. The only variable amount of pay in this pay period is the 10 hours of overtime, and it is this figure of 10 hours that you must include on the payslip.

An employee paid by the hour

You pay your employee the National Minimum Wage (NMW) that's relevant to their age for each hour they work. You pay them weekly depending on how many hours they work.

You must include all hours the employee works each week on their payslip. This is because you pay the employee based on how much time they actually work.

Additional pay for unsociable hours

Your employee earns above the NMW for each hour they work on a weekly basis, for the number of hours the employee works that week. The role sometimes requires them to work bank holidays.

If the employee works on a bank holiday, you pay them an overtime rate. For example, 1.5 times their normal hourly rate.

You must include all hours the employee works each week on their payslip. This is because you pay the employee based on how much time they actually work.

You can show the hours broken down by hours worked at normal rate and hours worked at 1.5 times the normal rate.

Term time employee

Your employee doesn't work during school holidays, only during term time. You pay them monthly in equal instalments whether it's term time or not.

As their pay doesn't vary depending on the amount of time the employee works, you don't have to show any hours worked on the employee's payslip.

Day rate employee

You pay your employee the same amount for each day they work, regardless of how many hours they work in a day.

As their pay varies by how many days they work, you must show the hours worked on the employee's payslip, even though their pay varies by day and not by the hour.

NOTE: To record this you must state the hours in the Payslip Comments field on the employee record. Read more >

A salaried employee takes unpaid leave

Your employee earns a basic salary per year that you pay in equal monthly instalments. The employee uses all their paid leave but takes unpaid leave.

You deduct the time taken as unpaid leave from the employee's monthly pay because they didn't work that time.

You don't need to show hours worked on the employee's payslip as their pay doesn't vary depending on the time worked, but rather their pay has varied due to the unpaid leave they have taken.

An hourly employee on statutory sick pay

You pay your employee on a monthly basis according to the hours they work. The employee was unable to work due to sickness. During the sickness period they receive statutory sick pay which is lower that their normal hourly rate.

As the employee is paid according to the hours they work and was working for the rest of the month, the hours they worked must show the hours on their payslip.