Your Pay Stub Explained

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In this article, we’ll explain everything you need to know about your pay stub—from what it is to the various terms used. After reading this article, you’ll have a clear understanding of how your pay stub is structured.

What is a pay stub?

You probably already know what a pay stub is. Still, we’ll explain it again. A pay stub is also known as a pay slip or pay statement. You receive your pay stub from your employer. It’s a (digital) document that shows how much money you’ve earned. You probably know exactly where to look to see how much money you’ve earned this week. But that’s not the only thing on your pay stub. This (digital) document also shows exactly how your salary is broken down.

What's on your pay stub?

First of all, it’s important to know that every pay stub looks different. So you might have to look around a bit to find where all the information is on your own pay stub. But at its core, every pay stub is the same.

There are a few required items that must appear on your pay stub, namely:

Your information and your employer's information;

• Gross pay;
• Net pay;
• Payroll tax;
• Premiums;
• Vacation pay;
• The statutory minimum wage;
• The period for which you are paid (for example, the month of August);
• The number of hours you work;
• Whether there is a written employment contract;
• Whether there is a permanent employment contract;
• Whether or not there is an on-call agreement.

Do these terms still sound like gibberish to you? Below, we’ll explain a few of them in more detail.

Gross salary

The gross pay shown on your pay stub is the amount you receive from your employer before taxes and social security contributions are deducted. This is therefore not the amount that is ultimately deposited into your bank account.

Net pay

This is the amount you receive from your employer after all taxes and contributions have been deducted. This is the final amount that will be deposited into your account.

Payroll Tax

Payroll tax is the tax you pay on your wages. It is withheld directly from your paycheck by your employer. Payroll tax consists of income tax and social security contributions.

Premiums

Premiums are contributions you pay for social insurance, such as pension, unemployment, and health insurance. Your employer deducts these premiums from your gross pay.

Vacation pay

Vacation pay is an additional amount you receive on top of your regular salary. At UBN, your vacation pay is automatically deposited into your bank account once a year. This takes place during the first week of June.

Are there any terms on your pay stub that we haven't explained here? If so, please contact your UBN branch. They can tell you more about them.

Why is it important to check your pay stub?

It’s important to carefully review your pay stub. Your pay stub allows you to verify that the number of hours worked, your salary, and any overtime or shift differential pay are correct. You can also see exactly how much you’re paying in taxes and social security contributions. This helps you better understand how much of your gross pay you’ll actually take home.

In short

Okay, so your pay stub is a (digital) document that shows you exactly how your salary is calculated. It’s important to check your pay stub to make sure you’re getting what you’re owed.

My pay stub via UBN

Once you start working with us, you’ll find all your pay stubs and annual statements in your personal “My UBN” portal. There, you can view and print these documents. Do you have any questions about the details on your pay stub? Please contact your local UBN office. They’ll be happy to assist you. At UBN, we believe it’s important that you know exactly where you stand.

After reading this article, are you curious to see what your pay stub looks like? We have a wide selection of job openings. Check out our job listings online or stop by a UBN branch near you to learn more. Who knows—you might receive your pay stub as early as next week!

View our job openings here