British workers were the most confident in Europe when it came to understanding their payslip, according to research from PayFit.
Out of 1,950 workers surveyed, 73% of UK employees said they fully understood their payslip.
Although the UK payroll system was seen as simpler, a quarter of British workers still struggled with tax deductions.
Pension contributions were confusing for 19%, and 18% said they worried about not spotting underpayments.
Firmin Zocchetto, co-founder and chief executive officer at PayFit, said: “When workers don’t understand their payslip, they’re left second-guessing whether they’ve been paid correctly, what’s gone into their pension, or how much tax they’re actually paying.
“This level of uncertainty can stall decisions – whether that’s applying for a mortgage, or simply figuring out if they can afford to book a holiday.
“Add evolving pension rules and warnings of tax hikes in this year’s Autumn budget, not only are we seeing employees face more complexity than ever, many are still relying on HR teams to interpret the basics.”
Despite difficulties, 94% of UK workers said they trusted their payslip was accurate.
When questions came up, 47% asked their HR or payroll team, while 20% spoke to their manager.
Only 6% used the internet and just 2% turned to artificial intelligence (AI).
Most British workers only asked for help two or three times a year at most, and 15% never raised payroll questions.
One in four needed support more often, at least once a quarter.
Those aged 18 to 34 were more likely to be confused about tax deductions (32% compared to 24% overall), pension calculations (24% versus 19%) and checking if they had been paid correctly (24% compared to 18%).
Nearly a third (28%) contacted HR or a manager at least monthly, more than double the UK average.
A previous survey by PayFit found 59% of 18 to 24 year olds did not understand their pay deductions and struggled to budget.
29% said clearer payslip information would help them make better financial decisions.
Zocchetto added: “Payroll remains one of the major pain points in working people’s daily lives but, with the right tools, it is also one of the simplest to solve.
“Employees shouldn’t have to decode their payslip or rely on HR to explain it – this takes everyone away from more meaningful tasks.
“Employers need to make payslips clearer, more intuitive, and easier to navigate, which will help workers make better financial decisions.”
He said: “That’s why PayFit is introducing an interactive payslip so that every employee can fully understand their payslip.”