Work & Pay Jargon Buster

Jargon: National Insurance

Plain English: A contribution you make from your salary to qualify for state benefits, including the state pension.
 

Jargon: P45

Plain English: A form provided by your employer when you leave a job, detailing your earnings and tax paid.

Jargon: PAYE (Pay As You Earn)

Plain English: The system where your employer deducts income tax and National Insurance contributions from your salary before you receive it.

Jargon: Tax Code

Plain English: A code used by HMRC to determine how much tax should be deducted from your pay.

Jargon: NI Number (National Insurance Number)

Plain English: A unique number used to track your National Insurance contributions and benefits entitlement.

Jargon: Pension Contributions

Plain English: Money deducted from your salary and paid into your workplace pension scheme for retirement savings.

Jargon: Statutory Sick Pay (SSP)

Plain English: A payment made to employees who are unable to work due to illness, provided by the employer.

Jargon: Auto-Enrollment

Plain English: The process where eligible employees are automatically enrolled in their workplace pension scheme by their employer.

Jargon: P60

Plain English: An annual statement provided by your employer summarizing your earnings and tax paid during the tax year.

Jargon: Benefits in Kind (BIK)

Plain English: Non-monetary benefits provided by your employer, such as company cars or private healthcare, which may be taxable.

Jargon: Workplace Pension Scheme

Plain English: A retirement savings plan offered by your employer, often with contributions from both you and your employer.

Jargon: Pensions Auto-Enrollment

Plain English: A UK government program that requires employers to automatically join eligible employees into a workplace pension scheme.

Jargon: Student Loan Repayment

Plain English: The process of repaying student loans, which is automatically deducted from your salary if you earn above a certain threshold.

Jargon: Employee Share Scheme

Plain English: Programs that allow employees to buy company shares or receive them as part of their compensation package.

Jargon: Salary Sacrifice

Plain English: An arrangement where you give up part of your salary in exchange for non-cash benefits, often for tax savings.

Jargon: Flexible Working

Plain English: Arrangements that allow employees to work outside traditional office hours or locations.

Jargon: Maternity Pay and Leave

Plain English: Paid time off and financial support for new mothers before and after childbirth.

Jargon: Bonus Scheme

Plain English: A system where employees can earn additional pay based on their performance or company profits.

Jargon: Redundancy Pay

Plain English: A financial payout from your employer if you lose your job due to business closure or workforce reduction.