First payslip: what’s been taken and why

Your first proper payslip is a small shock: the number you agreed and the number that lands are not the same. Knowing what each deduction is, and that most are correct, takes the sting out and helps you spot the rare mistake.

The deductions, line by line

Income tax comes off through PAYE against your tax code, National Insurance takes its slice once you earn over the threshold, and if you were auto-enrolled a pension contribution goes too, usually part-matched by your employer, which is free money you should keep. The government guidance explains the tax side, and the pension is the one not to opt out of lightly.

The student loan line

If you have a student loan, repayments only start once you earn over your plan’s threshold, and they come off as a percentage of the amount above it, not the whole salary. On a first graduate wage you may see nothing deducted for a while, which is normal, not a glitch. Our Plan 5 versus Plan 2 guide explains why the threshold matters more than the balance.

Check it, do not just file it

Emergency tax codes are common on a first job, and they can take too much until HMRC catches up. If the tax looks high, check the code against the rest of your first-jobs admin and query it, because a wrong code corrects itself far slower than you would like.

Written by Ellie Barnes. General information on student and graduate money, not financial advice; figures current for 2026.