Published Tuesday 7 July 2026

Table of contents

Key takeaways

What is a payslip?

Whether you're an employer issuing pay or an employee checking your earnings, understanding payslips is essential. A payslip is a document that details how your pay has been calculated for a specific pay period.

It shows your gross earnings (before deductions), any tax withheld under Pay As You Go (PAYG), superannuation contributions, allowances, overtime and the final net amount deposited into your bank account. You might also see payslips referred to as pay advices, pay statements or pay stubs, though "payslip" is the standard term used in Australian workplace law. A payslip is closely related to your broader payroll process.

Under the Fair Work Act 2009, employers are legally required to provide payslips to all employees. Payslips protect both parties: employees can verify they're being paid correctly, and employers have a clear record of compliance with pay obligations.

What must a payslip include in Australia?

Australian law sets out specific information that every payslip must contain. The Fair Work Regulations 2009 (regulations 3.45 to 3.48) list the compulsory elements, and missing any of them can result in penalties.

Every payslip must include the following details:

If an employee is paid an annual salary, the payslip must show the rate as at the last day in the pay period. For hourly employees, the number of hours worked at each rate should be recorded.

Common payslip abbreviations explained

Payslips often use abbreviations that can be confusing if you're not familiar with them. Here's a quick reference for the most common abbreviations you'll find on an Australian payslip.

When and how employers must provide payslips

Timing and delivery method matter when it comes to payslip compliance. Getting either wrong can expose your business to penalties under the Fair Work Act.

Employers must provide a payslip to each employee within 1 working day of paying them. This applies to every pay cycle, whether you pay weekly, fortnightly or monthly. The payslip must cover only the period for which the employee is being paid.

Payslips can be issued in hard copy (paper) or electronically. Electronic payslips are now the most common method, and they're fully compliant as long as employees can access and print them. Common electronic formats include email attachments, secure online portals and payroll software dashboards.

Since January 2023, all employers must report payroll information to the ATO through Single Touch Payroll (STP) Phase 2 each time they run a pay cycle. STP doesn't replace the obligation to issue payslips directly to employees, but it does mean the ATO receives a detailed breakdown of each employee's earnings, tax and super in near real-time.

How to read and check your payslip

Checking your payslip each pay period helps you catch errors early and make sure you're being paid correctly. It only takes a few minutes and can save you from bigger issues down the track.

Verify your personal and employment details

Start at the top of the payslip. Confirm your name, the employer's name and ABN, and the pay period dates are all correct. Errors in these fields can cause problems with tax returns and super contributions.

Check your hours and pay rate

If you're paid hourly, compare the hours listed on your payslip against your own records, such as timesheets or a time-tracking app. Make sure your hourly rate matches your employment contract or the relevant award. For salaried employees, confirm the annual rate is accurate and that your gross pay for the period reflects it.

Review deductions and superannuation

Look at each deduction line to make sure you recognise every item. PAYG tax should align with ATO tax tables for your income level. Super contributions should be at least 12% of your ordinary time earnings from 1 July 2025 onwards. If you have a HECS/HELP debt, check that repayments are only being deducted if your income is above the compulsory repayment threshold.

Confirm your net pay matches your bank deposit

The net amount on your payslip should match the deposit in your bank account. If there's a discrepancy, it could point to an unapplied deduction, a banking error or a payroll miscalculation. Flag it with your employer straight away.

What to do if your payslip is wrong or missing

Payslip errors and missing payslips are more common than you might think, especially in smaller businesses without dedicated payroll staff. Knowing your options helps you resolve issues quickly.

Raise it with your employer first

If you spot an error or haven't received a payslip, start by raising it directly with your employer or payroll team. Many mistakes are genuine oversights and can be corrected in the next pay run. Put your request in writing (email is fine) so there's a record.

Contact the Fair Work Ombudsman

If your employer doesn't fix the issue or refuses to provide payslips, you can lodge a complaint with the Fair Work Ombudsman. The Fair Work Ombudsman can investigate, request records from your employer and take enforcement action if needed. There's no cost to lodge a complaint and you can do it online.

Keep your own records

It's good practice to save copies of every payslip you receive and keep your own record of hours worked. If a dispute arises, your records make it much easier to identify what went wrong and when. Digital records stored in cloud storage or a payroll app are especially useful because they're timestamped and harder to lose. You can also download a free payslip template to help you get started.

Penalties for not providing compliant payslips

Failing to issue payslips, or issuing payslips that don't meet the requirements, is a breach of the Fair Work Act 2009. The penalties can be significant, particularly for repeat offenders.

Fair Work Inspectors can issue infringement notices for payslip breaches. The maximum civil penalty per breach is up to $19,800 for an individual and up to $99,000 for a body corporate (these amounts are updated periodically; check the Fair Work Ombudsman website for current figures). These amounts can be higher for serious contraventions.

Beyond fines, non-compliance can trigger a broader investigation into your payroll practices. If Fair Work finds underpayment or other breaches alongside payslip failures, the consequences can escalate further. Keeping your payslips accurate and on time is one of the simplest ways to stay on the right side of workplace law.

Electronic payslips and payroll software

Most Australian businesses have moved to electronic payslips, and payroll software makes this transition straightforward. Digital payslips are faster to issue, easier to store and simpler to keep compliant.

Payroll software automates the calculation of gross pay, PAYG tax, super contributions and other deductions based on the employee's details and the current tax tables. It generates payslips automatically each pay run, reducing the risk of manual errors that lead to non-compliance.

With STP Phase 2 mandatory since January 2023, your payroll software also needs to report detailed pay information to the ATO every time you process a pay run. This includes breakdowns of gross earnings by category (salary, overtime, allowances, leave), PAYG withholding and super. Choosing payroll software that handles STP Phase 2 natively saves you from manual ATO reporting.

Cloud-based payroll tools give you the added benefit of access from anywhere, automatic legislative updates and secure storage of payslip records. Employees can view and download their payslips through a self-service portal, which reduces admin for your team.

Simplify payroll and payslips with Xero

Managing payslips manually takes time and increases the chance of errors. Xero Payroll helps automate the process, from calculating pay and generating compliant payslips to reporting directly to the ATO through STP Phase 2.

With Xero, payslips are created automatically each pay run, designed to include the compulsory details required under the Fair Work Act. Employees can access their payslips online through a self-service portal, and you can manage everything from a single cloud-based dashboard.

Whether you're paying 1 employee or 100, Xero Payroll helps you stay compliant, helps reduce admin and lets you focus on running your business. Get one month free.

FAQs on payslips

Here are answers to some frequently asked questions about payslips in Australia.

Do casual employees get payslips?

Yes, all employees in Australia must receive payslips regardless of their employment type. This includes casual, part-time and full-time workers.

How long must employers keep payslip records?

Employers must keep employee records, including payslip copies, for 7 years. These records must be legible, in English and readily accessible for inspection.

Can an employer charge employees for payslips?

No, employers cannot charge employees for issuing payslips. Providing payslips is a legal obligation and any cost of producing or distributing them is the employer's responsibility.

What is the difference between gross and net pay on a payslip?

Gross pay is your total earnings before any deductions, while net pay is the amount deposited into your bank account after tax, super and other deductions have been subtracted. The gap between the 2 figures reflects your total deductions for that pay period.

Are payslips required for contractors?

No, independent contractors are not entitled to payslips because they are not classified as employees under the Fair Work Act. Contractors typically invoice for their services and manage their own tax and super obligations.