How to read your payslip

A payslip is a document provided by your employer that details your salary, deductions, and net pay. It serves as proof of income and is essential for financial planning, tax filing, and applying for loans or visas. Payslips are usually issued once a month and include information about your earnings, taxes, and other contributions.

Payslips are usually processed by the employer’s accounting department or payroll service providers and are sent to you once a month, typically via email. We recommend saving these files in a separate folder for easy access. It is also advisable to receive your payslips on your personal email rather than your work email to ensure you always have access to them.

In this article, we will break down the key components of a payslip step by step.

Decoding Your Payslip

View fullsize

Payslip sample

1. Employer Details

• Full entity name

• Address

2. Your Personal Details

• Full name

• Address

• Job title/Position

• Social Insurance Number – your unique social security ID

• Taxpayer Identification Code (TIC) – your tax ID in Cyprus

3. Pay Slip Period

The date range for the salary payment.

4. Earnings (Gross Income)

This section shows your total earnings before any deductions. It may include:

• Basic Salary – Your agreed monthly salary.

• Overtime Pay – Additional earnings for extra working hours.

• Bonuses & Commissions – Performance-based payments.

• Other Allowances – Payments for transportation, meals, or other benefits.

5. Deductions

These are the amounts subtracted from your gross salary, including:

• Income Tax – Tax deducted based on your salary bracket.

• Social Insurance Contributions – Mandatory payments to the Cyprus social security system (8.3% of your gross salary).

• GESY (General Healthcare System) – A healthcare contribution deducted from your salary (2.65% of your gross salary).

• Other Deductions – Pension fund contributions, union fees, or any agreed salary deductions.

6. Contributions

These are additional amounts paid by the employer on top of your salary. They do not affect your take-home pay but are part of your total employment benefits. Contributions include:

• Social Insurance (SI) – A percentage of your salary paid by your employer towards social security.

• GESY (General Healthcare System) – Employer’s contribution to the healthcare system.

• Provident Fund / Pension – If applicable, an employer-funded retirement savings contribution.

• Industrial Training Fund – A mandatory employer contribution used for workforce training programs.

• Redundancy Fund – An employer-paid contribution to cover compensation in case of redundancy dismissals.

7. Total and Net Pay

At the bottom of the payslip, you will typically find:

• Total (Gross Pay) – The sum of all earnings before deductions.

• Net Pay (Take-Home Pay) – The final amount deposited into your bank account after taxes and deductions.

Why Do You Need a Payslip?

A payslip is not just a breakdown of your salary—it is an important financial and legal document. Here are some key reasons why you should keep your payslips:

1. Proof of Income – Payslips serve as official proof of earnings, which is often required when applying for loans, mortgages, or renting a property.

2. Tax Filing & Refunds – Payslips show your tax deductions, helping you verify that you are paying the correct amount and making it easier to file tax returns or claim refunds.

3. Social Insurance & Pension Contributions – Your payslip includes deductions for Social Insurance and GESY (healthcare contributions), which are important for retirement and medical benefits.

4. Verifying Salary Payments – Reviewing your payslip helps ensure you are paid correctly and that bonuses, overtime, or deductions are applied properly.

5. Visa & Immigration Applications – If you are applying for residency, a work visa, or citizenship, you may be required to submit payslips as proof of employment and financial stability.

6. Employment Disputes – In case of disagreements with your employer about salary payments, bonuses, or deductions, your payslip acts as evidence of what was paid.

7. Job Applications & Promotions – Some employers request recent payslips to verify your previous salary when negotiating job offers or promotions.

Since payslips contain important financial data, we recommend saving them in a secure folder and ensuring you receive them on your personal email for easy access at any time.