12 May 2025

Understanding payslips is fundamental for employees, yet many find it challenging to make sense of the various figures, codes and deductions presented each month.
 
The CIPP’s Payslip Statistics Report 2024 reveals a growing trend: more employees are seeking help to make sense of their payslips. This increase in queries, absent from the 2023 report, highlights the need for payroll professionals to offer support and education in this area. By doing so, payroll can significantly contribute to employees’ financial wellbeing.
 
Here are five effective ways to assist your team in understanding their payslips and highlight the vital role of payroll in supporting wider financial literacy.

Organise payslip workshops

Scheduled workshops or webinars are an excellent way to educate employees about their payslips.

These sessions can cover:

  • Basic payslip components. Explain the fundamental parts of a payslip, including gross pay, net pay, tax deductions, National Insurance contributions, and pension contributions. Bring them to life with different examples
  • Common queries. Address frequent questions and concerns, such as understanding tax codes, what benefits are included and how deductions are calculated
  • Where to go for support. Share contact details for where to go when people have questions about their payslip, need to make changes, or spot mistakes that need to be corrected. Introduce the humans who make up the payroll team so people feel a personal connection

Interactive tools, like the one provided by the CIPP, can be invaluable in these sessions to help demystify the payslip.

By offering these workshops regularly, you create a platform for continuous learning and engagement. Identify key times of the year when uptake of these sessions might be highest, for example the new tax year, around pay review cycles or new starter dates.

These workshops can also serve as a proactive approach to reduce the volume of individual queries payroll professionals receive, allowing them to manage their workload more efficiently.

Create clear and simple guides

Straightforward, written guides or frequently asked questions can be a valuable resource for employees.

These guides should be easily accessible, both online and in print, and cover:

  • detailed explanations. Provide a breakdown of each section of the payslip, what each figure represents and why it’s important
  • visual aids. Use diagrams and annotated payslip examples to illustrate points clearly 
  • common terms glossary. Include a glossary of terms and acronyms often found on payslips

These guides can also be incorporated into employee onboarding processes. Additionally, updating these guides regularly ensures they remain relevant and accurate, reflecting any changes in payroll legislation or company policies. The use of clear and easy to understand language should be a priority when designing any communications. There are organisations that can support you with this. Some partner with companies to help them communicate numbers, and the words around them, more clearly.

Offer one-on-one support

Personalised assistance can make a significant difference for employees struggling with their payslips.

This support can be offered through:

  • dedicated helplines. Establish a helpline, internal messaging channel or email support where employees can ask specific questions about their payslips
  • scheduled appointments. Allow employees to book one-on-one sessions with payroll professionals to discuss their payslip in detail
  • training payroll staff to handle these queries effectively is crucial. This training should cover not only technical knowledge, such as understanding changes in tax codes or implications of salary adjustments, but also soft skills for handling sensitive financial discussions

Being able to communicate clearly and empathetically can ensure employees feel confident asking questions, feel informed about their financial status and ensure that everyone is on the same page to avoid errors.

Utilise technology and automation

Leveraging technology can streamline the process of explaining payslips and enhance accessibility.

Consider the following approaches: 

  • interactive payslip portals. Develop online portals where employees can view interactive versions of their payslips 
  • automated chatbots. Implement chatbots capable of answering common payslip-related questions and guiding employees through their payslips step by step 
  • mobile apps. Create or utilise existing mobile apps that allow employees to access their payslips and related information on the go

These technological solutions can provide immediate, on-demand support, reducing the burden on payroll staff and improving employee satisfaction, albeit there may be an upfront cost to design and implement such solutions.

Technology can also be used to gather feedback from employees about their experiences and any extra support they might need. Additionally, employing data analytics can help identify common issues or trends, allowing payroll to address them proactively.

Integrate with financial wellbeing programmes

Understanding payslips is just one aspect of financial literacy. Payroll can play a pivotal role in promoting overall financial wellbeing by integrating payslip education with other financial wellbeing initiatives taking place in your organisation.

This can include:

  • employee benefits. Consider how employees can leverage existing employee benefits to improve their finances and how it shows up on their payslip, or impacts the numbers, when they have signed up
  • resource signposting. Provide information on where employees can find further financial advice, guidance and support, on the payslip or included in the communications around their payslip
  • financial wellbeing workshops, tools and education. Review existing financial wellbeing content delivered to your teams and find opportunities to incorporate education around their payslip. For example, in a webinar about pensions, show how pension contributions appear on a payslip and how it impacts tax and net income.
Integrating with existing benefits and financial wellbeing initiatives can help to foster a culture of financial awareness and empowerment within the organisation. Employees who feel supported in their financial journey are likely to be more engaged and productive, and providing access to financial education can help reduce financial stress, leading to improved mental health and overall wellbeing.

Summary

There’s a growing need for payroll professionals to offer financial wellbeing support.

By organising workshops, creating clear guides, offering personalised support, utilising technology and integrating with financial wellbeing programmes, payroll can significantly enhance employees’ understanding of their pay and support financial health.

Investing in training for payroll professionals is equally important. Training should cover both the technical aspects of payslips and the interpersonal skills needed to address financial concerns sensitively. By equipping payroll professionals with the right tools and knowledge, they can leverage their unique opportunity to make a meaningful impact.

A payroll department that actively engages in financial education demonstrates its value to the organisation and its employees, fostering a culture of transparency and trust. By embracing these strategies, payroll can transform into a key player in promoting financial literacy and wellbeing, ultimately building a more informed and financially secure workforce.

You can view CIPP's helpful payslip tool by visiting our dedicated page here.

The above article was written be Stacey Lowman, Co-founder and Director of Money First Aid

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