Payslip vs. Paystub — What's the Difference?

Payslips and paystubs both serve the same fundamental purpose: providing employees with a detailed breakdown of their earnings, taxes, and other deductions for a specific pay period. The primary difference between the two lies in regional usage; "payslip" is commonly used in British English, whereas "paystub" is the term more frequently used in American English.

Both documents typically include the employee’s gross income, net income, tax withholdings, social security contributions, and any other deductions. While the structure and layout might vary, the essential information provided is largely the same, aiming to ensure transparency about how the net pay was calculated.

The terminology difference reflects broader linguistic variations between American and British English, without implying significant differences in the function or importance of the document. Regardless of the term used, these documents are crucial for personal financial management, loan applications, and tax filings.

Employers are required to provide either a payslip or a paystub to their employees in most jurisdictions, as part of labor rights and financial transparency. This ensures that employees are aware of their financial details and can verify the accuracy of their compensation and deductions.

In some contexts, these documents can also serve as proof of employment or income, making them important for employees beyond just tracking earnings and deductions. Whether called a payslip or paystub, the document is a key piece of financial information for employees, reflecting their earnings history and financial relationship with their employer.