Your umbrella payslip is not like a normal job payslip. It shows employer costs. It shows assignment rates. It shows many deduction lines. A normal job payslip does not show these things. This guide explains every line. You will know where your money goes.
We hold FCSA accreditation. We also hold Professional Passport accreditation. Every payslip we issue follows the compliance standards set by these bodies.
What does an umbrella payslip look like?
An umbrella payslip has three sections. The assignment income block sits at the top. The payments block sits in the middle. The deductions block sits below. The assignment block shows what the agency paid. The payments block shows your gross pay. The deductions block shows tax, NIC, and pension. These come off before net pay.
The layout changes between umbrella companies. But those three sections always appear. Your payslip must show the assignment income block. If it does not, that is a problem. You should always see what came in. You should see it before any deductions.
Use the umbrella pay calculator to run the numbers in advance. Do this before your first payslip arrives.
What is the assignment rate on your payslip?
The assignment rate is the total amount your agency pays the umbrella. It is not your pay. It is the starting point. All costs and deductions flow down from it.
For example, you work at £350 per day for 5 days. The assignment rate is £1,750 for the week. The umbrella takes its margin from that figure. It also takes employer costs. What remains becomes your gross pay.
The assignment rate must appear on your payslip. You must see it clearly. If you only see gross pay, ask your umbrella. Ask them to explain.
What is gross pay on an umbrella payslip?
Gross pay is what remains from your assignment rate. The umbrella first deducts its margin. It deducts employer National Insurance. It deducts employer pension. Your income tax and employee NIC use this gross pay figure.
At 2026-27 rates, employer NIC is 15%. It applies on earnings above the secondary threshold. Your umbrella pays this from the assignment rate. It pays this before setting your gross pay. Employer pension adds at least 3% 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 than your day rate. The umbrella’s costs come out first. Employer NIC at 15% reduces the assignment rate. The umbrella margin reduces it. The employer pension reduces it. These come out before gross pay is set. This is normal. This is legal.
Take the £350 per day example. You work 5 days. The assignment rate is £1,750. Subtract the umbrella margin. That is about £25. Subtract employer NIC. That is about £185. Subtract employer pension. That is about £42. Your gross pay is about £1,498.
The umbrella does not keep this money as profit. Employer NIC goes to HMRC. Employer pension goes to your pension pot. The margin is the umbrella’s fee. It pays for running your payroll. Check that each line is itemised. Check that each line is clear.
What are all the deductions on your payslip?
The deductions section shows income tax. It shows employee NIC. It shows employee pension. It shows any salary sacrifice amounts. Each deduction must appear on its own line. Each line must have its own figure. One big unexplained number is a red flag.
Here is what each deduction means at 2026-27 rates:
Income tax (PAYE): You pay 0% on the first £12,570 of your yearly 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 earnings between £12,570 and £50,270 per year. You pay 2% on earnings 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 for you.
Student loan: If you are on a repayment plan, this appears as a separate deduction line.
Salary sacrifice: You may agree to extra pension sacrifice. This shows as a separate line. Read our guide on pension salary sacrifice.
For a deeper look at NIC, see National Insurance on umbrella pay.
How is holiday pay shown on your payslip?
Holiday pay appears in one of two ways. It may show as a rolled-up line on every payslip. Or it may sit as an accrual. The umbrella holds it until you take leave. Both ways are legal. You must know which method your umbrella uses. Do not mistake it for a bonus. Do not miss it.
Rolled-up holiday pay adds a percentage to your gross pay. It adds this each period. The standard rate is 12.07%. This applies to workers with 28 days of statutory leave. You see it as a separate line. The line says “holiday pay”. It sits in the payments section.
Accrued holiday pay sits in a pot. The umbrella manages this pot. It does not appear on your regular payslip. You claim it when you take time off. You also claim it when you leave. Ask your umbrella which method applies to you.
For a full breakdown, read umbrella company holiday pay.
A worked example at £350/day
Here is a weekly payslip for a contractor on £350 per day. This example uses 5 days. It uses a standard tax code. It assumes basic-rate tax. It assumes 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 use a standard 1257L tax code. They assume no student loan. Your own figures will be different. They depend on your tax code. They depend on your hours. They depend on your pension choices.
What should you do if something looks wrong?
Check your payslip carefully. A deduction may have no explanation. A figure may not match what you expect. Net pay may differ from your bank deposit. If any of these happen, contact your umbrella’s payroll team. Do it the same day. Ask for a written breakdown of every line. A compliant umbrella will give you this. They will not hesitate.
First, check net pay against your bank. A small difference adds up fast. Do this check every time. Then check the assignment rate. It must match what your agency told you. Check the employer NIC figure. Check the margin figure. If any look wrong, ask for the calculation. Ask for it in writing.
DASA holds FCSA accreditation. We also hold Professional Passport accreditation. Both bodies require clear payslips. If you are with DASA and something looks wrong, call us. You can also email us. We will explain every line.
Watch for payments outside your payslip. Some are called “loans”. Some are called “advances”. These are signs of tax avoidance. HMRC treats these as taxable income. You carry the liability. The umbrella does not.
Frequently Asked Questions
What is the assignment rate on an umbrella payslip?
The assignment rate is the total amount your agency pays the umbrella. It is the starting figure. The umbrella deducts its margin from it. It deducts employer NIC. It deducts employer pension. What remains is your gross pay.
Why is my gross pay lower than my day rate?
Employer NIC comes out of your assignment rate first. It is 15% in 2026-27. The umbrella margin comes out. The employer pension comes out. These all come out before gross pay is set. These are employer costs. They are not extra deductions from your pay.
What deductions appear on an umbrella payslip?
Income tax appears. Employee NIC appears. Employee pension appears. Any salary sacrifice appears. Each one must show on its own line. Each line must have its own figure.
How is holiday pay shown on an umbrella payslip?
It may show as a rolled-up line on each payslip. This is 12.07% of gross pay. Or it may sit as accrued pay. The umbrella holds it until you take leave. Ask your umbrella which method applies to you.
What should I do if my payslip looks wrong?
Contact your umbrella’s payroll team right away. Ask for a written breakdown of every line. Check that net pay matches your bank deposit. A compliant umbrella will explain every figure. They will not hesitate.
What are the income tax rates for 2026-27?
The personal allowance is £12,570. You pay 0% tax on this. The basic rate is 20%. It applies on earnings from £12,571 to £50,270. The higher rate is 40%. It applies on earnings from £50,271 to £125,140.
