Guidance on additional information required on payslips

New legislation came into force in April 2019.

All employers must show hours on employee payslips, where the pay varies by the amount of time worked.

With Payroll, you can be confident that your service is always up to date with the latest legislation. You can show hours on the payslips when needed. We’ve listed some scenarios below to show when you might need to show hours or not.

You can also find further information in this article:

• 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
• Earns a basic salary per year
• The role requires no overtime
• 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 a set amount of hours per week
• Earns a basic salary per year
• The role requires the employee to sometimes stay late
• Comes in at weekends due to work load

You pay the employee extra for working beyond the standard weekly hours (overtime). 

You don’t need to show the basic hours for their salary as this doesn’t vary based on the hours worked.

You must show the number of hours worked as overtime. It is the figure of hours you must include on the payslip.

For 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. 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. 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:

You pay the employee 1.5 times their normal hourly rate if they work bank hiolidays.

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 installments whether it’s term time or not.

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.

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.

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. 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 (SSP). SSP is lower than their normal hourly rate.

You pay the employee according to the hours they work. The employee was working for the rest of the month, so the hours they worked must show the hours on their payslip.