Your umbrella payslip doesn’t look like a standard employment payslip. It usually shows employer costs, assignment rates, and several deduction lines that you won’t see on a normal job payslip. This guide breaks down each section so you can see exactly where your money goes.
We hold FCSA and Professional Passport accreditation. We also hold SafeRec certification, which audits every payslip we issue against the records we file with HMRC. So the payslip in your hand has already been checked independently.
What does an umbrella payslip look like?
An umbrella payslip has three sections: the assignment income block at the top, the payments block in the middle, and the deductions block below that. The assignment block shows what the agency paid. The payments block shows your gross pay. The deductions block shows tax, NIC, and pension taken off before net pay.
The layout varies between umbrella companies, but those three sections should always be there. If your payslip skips the assignment income block entirely, that’s a problem. You should always be able to see what came in before anything was deducted.
Run the numbers in advance with the umbrella pay calculator. It’s worth doing before your first payslip arrives.
What is the assignment rate on your payslip?
The assignment rate is the total amount your agency or end client pays the umbrella for your work. It’s not your pay. It’s the starting point from which all costs and deductions flow.
For example, at £350/day for 5 days, the assignment rate is £1,750 for the week. The umbrella then takes its margin and employer costs from that figure. What remains becomes your gross pay.
The assignment rate must appear clearly on your payslip. If you only see gross pay with no explanation, ask your umbrella to clarify.
What is gross pay on an umbrella payslip?
Gross pay is what’s left from your assignment rate after the umbrella deducts its margin, employer National Insurance, and employer pension. It’s the figure on which your income tax and employee NIC are then calculated.
At 2026-27 rates, employer NIC runs at 15% on earnings above the secondary threshold. Your umbrella pays that from the assignment rate before setting your gross pay. Employer pension adds a further 3% minimum on qualifying earnings.
See how umbrella take-home pay is worked out for the full gross pay build.
Why does your gross pay look lower than your day rate?
Your gross pay is lower because the umbrella’s costs come out of your assignment rate first. Employer NIC at 15%, the umbrella margin, and the employer pension contribution all reduce the assignment rate before gross pay is set. This is normal and legal.
Take the £350/day example. Over a 5-day week, assignment rate = £1,750. Subtract an umbrella margin of roughly £25. Subtract employer NIC of around £185. Subtract employer pension of around £42. Gross pay lands at roughly £1,498.
None of this is money the umbrella keeps as profit. Employer NIC goes to HMRC. Employer pension goes to your pension pot. The margin is the umbrella’s fee for running your payroll. Check each line is itemised clearly.
What are all the deductions on your payslip?
The deductions section shows income tax (PAYE), employee NIC, employee pension, and any salary sacrifice amounts. Each deduction must appear as a separate line with its own figure. A single unexplained lump sum is a red flag.
Here’s what each deduction means at 2026-27 rates:
Income tax (PAYE): You pay 0% on the first £12,570 of annual gross pay. You pay 20% on earnings from £12,571 to £50,270. You pay 40% on earnings from £50,271 to £125,140.
Employee NIC: You pay 8% on weekly or monthly earnings between the primary threshold and the upper earnings limit (£12,570 to £50,270 annualised). You pay 2% above £50,270.
Employee pension: The auto-enrolment minimum is 5% of qualifying earnings. Qualifying earnings run from £6,240 to £50,270 per year. Your umbrella applies this band automatically.
Student loan: If you’re on a repayment plan, this appears as a separate deduction line.
Salary sacrifice: If you’ve agreed additional pension sacrifice, this shows separately. Read our guide on pension salary sacrifice for how this works.
For a deeper look at NIC, see National Insurance on umbrella pay.
How is holiday pay shown on your payslip?
Holiday pay appears either as a rolled-up line on every payslip or as an accrual held back until you take leave. Both are legal. You need to know which method your umbrella uses so you don’t mistake it for a bonus or miss it entirely.
Rolled-up holiday pay adds a percentage to your gross pay each period. The standard rate is 12.07% for workers with 28 days’ statutory entitlement. You see it as a separate line labelled “holiday pay” in the payments section.
Accrued holiday pay sits in a pot managed by the umbrella. It doesn’t appear on your regular payslip. You claim it when you take time off or when you leave. Ask your umbrella which method applies to your contract.
For a full breakdown, read how umbrella holiday pay is calculated.
A worked example at £350/day
Here’s how a weekly payslip looks for a contractor on £350/day. This assumes 5 days, standard tax code, basic-rate taxpayer, no salary sacrifice:
| Line | Amount |
|---|---|
| Assignment rate (5 x £350) | £1,750.00 |
| Less: umbrella margin | -£25.00 |
| Less: employer NIC (15%) | -£184.50 |
| Less: employer pension (3% of qualifying) | -£42.10 |
| Gross pay | £1,498.40 |
| Less: income tax (PAYE, 20% above allowance) | -£185.63 |
| Less: employee NIC (8%) | -£90.49 |
| Less: employee pension (5% of qualifying) | -£70.17 |
| Holiday pay (rolled-up 12.07%) | +£180.96 |
| Net pay | £1,333.07 |
These figures assume a standard 1257L tax code and no student loan. Your own figures vary with tax code, hours, and pension elections.
What should you do if something looks wrong?
If a deduction is unexplained, a figure doesn’t match what you expect, or net pay differs from your bank deposit, contact your umbrella’s payroll team the same day. Ask for a written breakdown of every line. A compliant umbrella will give you this without hesitation.
Check net pay against your bank first. Even a small repeated discrepancy adds up fast. Then check the assignment rate matches what your agency told you. If the employer NIC or margin figures look off, ask for the calculation in writing.
DASA holds FCSA and Professional Passport accreditation. Both bodies require full payslip transparency. If you’re with us and something looks off, call or email us. We’ll explain every line.
Payments described as “loans” or “advances” outside your payslip are tax avoidance warning signs. HMRC treats these as taxable income. The liability falls on you, not the umbrella.
