British workers are the most confident in Europe when it comes to understanding their payment of pay, but a quarter is confronted with confusion around tax deductions and retirement calculations, according to new research from Payfit.
In a survey of 1,950 workers across Europe, British employees dominated the table for the literacy of the slides, 73% claiming that they fully understand their glinding – against 54% in Spain and only 29% in France, where pay systems are much more complex.
While British workers benefit from a simpler pay structure, some gray areas persist that many admit make their daily life more complicated. Almost a quarter (24%) find it difficult to understand the tax deductions, while 19% find contributions to the divest pension. Being unable to identify sub-paids also concern 18% of respondents.
“These gaps appear in daily decisions,” comments Firmin Zocchetto, co-founder and CEO of Payfit. “When workers do not understand their slide, they are left second, which they were paid properly, which has entered their pension or the amount of tax they really pay. This level of uncertainty can stall decisions – whether for a mortgage or simply to know if they can afford to book a vacation.
“Add retirement rules and warnings evolving the tax increases in this year's fall budget, not only do we see employees confronting more than ever complexity, but many always count on HR teams to interpret the bases.”
Despite these challenges, confidence in employers remains high. 94% of British workers believe that their pay slip is correct (compared to 88% in Spain and 81% in France) and, when questions arise, almost half (47%) turn to HR or payroll teams for clarification, while 20% ask their manager. Only 6% use the web and only 2% turn to AI, perhaps pointing to a lack of confidence in generic tools to explain something as personal as payroll.
Even when they call for their employer's support, only 60% of British workers ask for an explanation at most two or three times a year. 15% never raise pay questions at all. One in four needs support more frequently – at least once a quarter – suggesting that although general understanding is solid, continuous confusion always affects a significant part of the workforce.
Interestingly, French workers – despite more complex payment shots – show models similar to their British counterparts. Almost 75% reach HR two to three times a year or less, and only 4% do it at least once a month. In Spain, 64% ask questions about their salary two to three times a year or less, but a significant proportion (24%) ask for help at least once a quarter, demonstrating a regular need for support from part of the active population.
Research also reveals key generational differences, understanding young British workers in the slides is significantly lower than the rest of the workforce. People aged 18 to 34 are faced with increased confusion with regard to tax deductions (32% against 24% overall), retirement calculations (24% against 19%) and payments verification (24% against 18%).
This lack of understanding is reflected in the frequency to which they contact HR or their managers. Almost a third (28%) contact them at least monthly, more than double the British average (13%), while 38%do it between quarterly and 2 to 3 times a year (against 27%).
The results show little improvement compared to the beginning of this year, when a separate Payfit survey of more than 2,000 British adults revealed that 59% of 18-24 year olds did not include their wage deductions and had trouble budget. Almost one in three (29%) said that clearer information would help it make better financial decisions.
Firmin adds: “Payroll remains one of the main points of pain in the daily life of people who work, but, with the right tools, it is also one of the simplest to solve. Presentation of an interactive slide so that each employee can fully understand their slide. »»
