Your payslip explained! By Abimbola Abdur-rahman Lekki
Deduction What it generally represents PAYE Personal income tax deducted through payroll Employee pension contribution Retirement savings under applicable pension arrangements NHF Housing fund contribution where applicable Qualifying health insurance/NHIS contribution Health insurance contribution Loan repayment Repayment of money borrowed Salary advance Recovery of salary paid in advance Cooperative contribution Employee savings/investment arrangement Union dues Trade union contribution where applicable Insurance contribution Insurance arrangement Other authorised deductions Depends on the employment arrangement The crucial point is that the existence of a deduction on your payslip does not make it a tax deduction for PAYE purposes.
Your Payslip Is a Conversation With Your Employer Imagine that your payslip shows: Gross Earnings:N500,000 PAYE: N35,000 Pension: N40,000 Cooperative: N20,000 Loan Repayment: N50,000 Your net salary will obviously be substantially lower than your gross salary.
It may represent the employee’s contribution to a cooperative society or savings scheme, subject to the relevant authorisation given by the employer.
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