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The short answer
A first payslip abroad typically shows three kinds of deduction: income tax (worked out from a tax code or withholding form), social security (National Insurance in the UK, FICA in the US, CPP and EI in Canada, PRSI and USC in Ireland) and a workplace pension contribution. Check each against the official rates: in the UK for 2026-27, for example, most people get a £12,570 personal allowance, pay 20% basic-rate tax and 8% employee National Insurance on earnings between £1,048 and £4,189 a month.
In Nigeria a payslip usually shows PAYE, pension and perhaps NHF. Abroad the labels change, the order changes and there may be a line you have never seen. Reading it line by line in the first month is the quickest way to spot an error, because an emergency tax code or missing number is far easier to fix early.
The parts of a payslip
- Gross pay
- What you earned before deductions: salary, hourly pay, overtime.
- Tax code or filing status
- Tells payroll how much income is tax-free. UK: a code such as 1257L. US: your Form W-4 choices.
- Income tax
- PAYE in the UK and Ireland; federal (and often state) withholding in the US; federal and provincial tax in Canada.
- Social security
- UK National Insurance; US Social Security and Medicare (FICA); Canada CPP and EI; Ireland PRSI and USC.
- Pension
- Your contribution to a workplace scheme; the employer's share may be shown separately.
- Net pay
- What reaches your bank account.
- Year-to-date
- Running totals since the start of the tax year, useful for checking refunds.
United Kingdom
GOV.UK lists 2026-27 rates as a £12,570 personal allowance, 20% up to £50,270, 40% up to £125,140 and 45% above (Scotland differs). Employee Class 1 National Insurance is 8% on earnings between £242 and £967 a week (£1,048 to £4,189 a month) and 2% above. Auto-enrolment requires at least 8% of qualifying earnings in total, of which the employer pays at least 3%, on earnings between £6,240 and £50,270 a year.
The tax code is the first thing to check. GOV.UK says 1257L is used for most people with one job, and that a code ending in W1, M1 or X is an emergency code. HMRC may take up to 35 days from your start date to update it. If yours is an emergency code, see overtaxed in your first job: getting it corrected.
Worked UK example
Example figures: monthly gross pay of £2,500, tax code 1257L, England, 5% employee pension on qualifying earnings, ignoring how the scheme gives tax relief.
| Line | Calculation | Amount |
|---|---|---|
| Monthly tax-free pay | £12,570 ÷ 12 | £1,047.50 |
| Income tax | (£2,500 − £1,047.50) × 20% | £290.50 |
| National Insurance | (£2,500 − £1,048) × 8% | £116.16 |
| Pension (employee) | (£2,500 − £520) × 5% | £99.00 |
| Net pay | £2,500 − £290.50 − £116.16 − £99.00 | £1,994.34 |
The £520 is the monthly equivalent of the £6,240 qualifying earnings floor. Your employer adds its own contribution of at least 3% on the same band (£59.40 in this example), which does not come out of your pay. Real payslips may differ slightly because of rounding and the pension scheme's method.
United States
The IRS sets 2026 employee FICA at 6.2% Social Security on wages up to $184,500 and 1.45% Medicare, with an extra 0.9% Medicare on wages over $200,000. Federal income tax withholding depends on the Form W-4 you give your employer, so fill it in on your first day. Many states also withhold income tax. Nonresident alien F-1, J-1 and M-1 students in the US for fewer than five calendar years are generally exempt from FICA on authorised work, according to the IRS; if FICA appears on such a student's payslip, ask payroll.
Canada
The CRA lists 2026 CPP contributions at 5.95% for employees on earnings between the $3,500 basic exemption and $74,600 (the year's maximum pensionable earnings), up to $4,230.45. EI premiums and federal and provincial income tax also appear. Quebec runs its own pension plan.
Ireland
Irish payslips show income tax, PRSI and the Universal Social Charge. Chartered Accountants Ireland's Budget 2026 summary gives USC from 1 January 2026 at 0.5% up to €12,012, 2% to €28,700, 3% to €70,044 and 8% above, with total income under €13,000 exempt. If your first Irish payslip shows unusually high tax, the cause is often a missing PPS number or an unregistered job; the fix is in getting overpaid tax corrected.
What to check first
- Your name and tax or social security number are correct.
- The tax code or filing status is not an emergency one.
- Social security is calculated on the right band.
- The pension percentage matches your enrolment letter.
- Net pay matches what arrived in your account.
Deciding what to send home comes after this; see budgeting a first salary while supporting home, and before cutting the pension line read should you opt out of a workplace pension.
Where Pryme fits
Once net pay lands, a Pryme account opened from any country can hold it in pounds, dollars, euros or naira, and the app shows the rate and the fee before you approve a conversion (multicurrency account).
Questions people ask
What is 1257L on my UK payslip?
It is the tax code GOV.UK says is used for most people with one job: a £12,570 tax-free personal allowance. A code ending W1, M1 or X is an emergency code.
Why is National Insurance deducted from my pay?
It is the UK's social security contribution. For 2026-27 employees pay 8% on earnings between £1,048 and £4,189 a month and 2% above.
What is FICA on a US paycheck?
Social Security (6.2% up to $184,500 in 2026) and Medicare (1.45%). Some nonresident alien students are exempt, according to the IRS.
What is USC on an Irish payslip?
The Universal Social Charge, a separate tax on income. From January 2026 it runs from 0.5% to 8% across bands, with incomes under €13,000 exempt.
Sources
- GOV.UK: Income Tax rates and Personal Allowances · accessed Oct 2026
- GOV.UK: Tax codes · accessed Oct 2026
- IRS: Topic 751, Social Security and Medicare withholding rates (reviewed 24 Sep 2026) · accessed Oct 2026
- IRS: Foreign student liability for Social Security and Medicare taxes (reviewed 18 Aug 2026) · accessed Oct 2026
- CRA: CPP contribution rates, maximums and exemptions · accessed Oct 2026
- Chartered Accountants Ireland: Income tax measures, Budget 2026 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.