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Why You Should Really Be Keeping Your Payslips

Being organised will save yourself time, effort and a headache of paperwork in the future.

Unless you’re a freelancer, your employee rights state that you’re entitled to a monthly payslip.

A payslip is essentially a written statement from the employer to the employee that outlines the total pay before tax and all details of any deductions from pay. It can be provided to you in either electronic format or in hard copy. 

The Payment of Wages Act 1991 refers to situations where deductions are made from pay or the employee needs to make a payment to the employer.

The following deductions from your pay by your employer are allowed when:

  • They are required by law, for example, tax (PAYE) and social insurance (PRSI),
  • They are provided for in the contract of employment, for example, occupational pension contributions
  • They are made with your written consent, for example, trade union subscriptions
  • They are to recover an overpayment of wages or expenses
  • They are required by a court order, for example, an attachment of earnings order in a family law case
  • They arise because you are on strike

These deductions may either be fixed (payments which remain consistent each payday, such as a subscription) or variable (subject to fluctuate, such as tax).

Revenue encourages all workers to keep their payslips – a lofty task for anyone in employment 30+ years. However, it is advisable to keep all payslips for as long as you have made pensions contributions to show that you’ve been paying into your retirement pot. 

Here's why:

- Tax Returns

Payslips include all the relevant information you need to complete your tax return; making things much easier for yourself or your tax adviser when due.

- Renting or applying for a mortgage

A payslip provides proof of your earnings, which is something that you must have when applying for a mortgage or looking to rent a property.

- Queries on your pay

Given that your payslip is proof of what you earn, you may have to show proof of payment when applying for a loan.

- Proof of pension deductions

Unlike income tax (which is overlooked by Revenue), pension contributions aren’t monitored, meaning our payslips are the only acceptable evidence of past pension payments. Failure to show these may result in you receiving less than you contributed. 

- Visa applications for overseas travel

Certain countries have rules in place that don't allow tourists to visit unless they earn a certain amount per year. 

- Maternity leave

You will need your payslips to calculate entitlements.

- Preventing fraud

Identity theft has become the most common type of cybercrime in Ireland, something which is escalating beyond boundaries. Ensuring that your payslips boast security and that they don't fall into the wrong hands is one of the small steps you can take to limit the chance of your personal information being compromised.

If you do have gaps (in your payslips), then make sure you keep your P60s at the end of each tax year.

Main image by @katemosstyle

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