If you are an employee it is your right to know how much you will be earning and how often. Surprisingly, many Ghanaians know very little about their salary pay slip. Your employer is not doing you a favor by providing a written and detailed statement explaining how you earned your money. When it comes to salary pay slips there are various categories of people. There are those who get their detailed pay slips and understand them. There are those who receive them yet they do not understand what is contained. Lastly, there are those employees who do not receive pay slips and do not know a thing about the same. Luckily for all the above-mentioned groups, this article is about empowering all employees to understand their salary pay slips better.
If you are an employee you might have sometime received a salary that is less than what you expected. When you question the authorities you are informed that there were deductions for this and that. Some individuals leave it at that because the authority has spoken even when not convincing. Such instances can be avoided when you know your rights. Any deductions ought to have been factored in your employment contract and if that is the case you ought to have known about it. Otherwise, you are entitled to demand for timely salary pay slips that come before or when you are getting paid- not later.
Sometimes you may know all your rights and can access your payslip in time but then be challenged by things such as abbreviations and terminology. As a result, you need to be well versed with common payment terms and abbreviations. Below is a guide to help you understand your payslip better:
READ ALSO: CAGD validation 2018
How can I understand my payslip better?
Start with the basics. Naturally, all pay slips tend to use the same terminology. This terminology is actually very important because if you understand it you can easily detect when you are being paid incorrectly. Below are some common pay slip terms you must know:
- Gross pay: Refers to the total amount of money you have earned before any deductions is made. It is a totality of the basic pay, overtime allowances, extra bonuses, and holiday packages.
- Net pay: This is what you earn after all deductions such as tax and insurance have been made.
- Basic pay: This is the fixed pay agreed on by you and your employers minus any bonuses or allowances.
- PAYE: The abbreviations for Pay As You Earn imply state deductions such as income tax and national insurance.
READ ALSO: How to calculate income tax in Ghana 2018
What else can I see on my payslip?
Although pay slip formats vary from one company to another, most of the things contained are usually the same. Note that any variations in the format of salary pay slip may be subject to your individual earnings and accrued benefits. Be keen to check the following information on your salary pay slip the next time you get one.
- Payroll number: This is the unique number that is used by employers to identify you on the payroll.
- Tax period: It is a number on the payslip representing the tax period for that particular pay slip.
- Tax code: The code gives you the rate at which you are taxed.
- National insurance (NI) number: An insurance number is very important for the state because it confirms that you are eligible to work in the country.
- Expenses: Remember that work trip for which you used your money? In the expenses section, all the money you are owed will be displayed.
- Pensions: If your employer has a pension scheme then this section will display the amount of money being paid towards your pension.
- Student loan: For those who were granted a student loan for higher education that has to be paid back, this section ought to be of interest to you. It shows how much is being deducted towards your loan repayment.
READ ALSO: CAGD pay dates 2018
Salary pay slip sample
Check out the salary pay slip sample below:
In what ways do employers release payslips in Ghana?
If you are an employee in Ghana you might want to check your salary payslip online. This can only be possible if you have required credentials such as employee number and the national identification number. However, some employers have not embraced technology, therefore, give hard copies to their employees. If this is the case, visit the finance office and request to be given your employee salary pay slip. The payslip can also be posted or emailed to you if your workstation is far from the headquarters.
By now you should be equipped to understand your salary pay slip better. If you still have any problem do not be afraid to seek clarification from your employer. If the response you get is not satisfactory feel at liberty to raise the same with your employee representative or trade union. If it doesn’t work out there is always the option of an industrial tribunal.
- CAGD pay dates 2018
- What is the minimum wage in Ghana 2018?
- How to calculate income tax in Ghana 2018