Gibraltar Payslip Generator

How payroll works in Gibraltar (and why it is not the UK)

Gibraltar is a separate tax jurisdiction with its own Income Tax Office and its own Department of Employment. Although the working language is English and the currency is pegged 1:1 to sterling, Gibraltar does not run UK PAYE, does not use UK tax codes, and does not deduct UK National Insurance.

Instead, an employer withholds Gibraltar PAYE income tax (under either the Allowance-Based System or the Gross Income Based System, explained below) and a Gibraltar Social Insurance contribution from the employee, and pays an employer Social Insurance contribution on top. Both PAYE and Social Insurance are remitted to the Income Tax Office, normally by the 15th of the following month. Because of this, a payslip built from UK logic — UK tax bands, UK NI thresholds — will show the wrong figures for a Gibraltar employee even though it uses the right pound sign.

What a Gibraltar payslip must legally show

The legal basis is the Employment Act, section 52, which requires employers to give each employee a written itemised pay statement in the prescribed form (Schedules 1 and 2, linked to the Employment (Forms) Regulations). A statement must be issued for each pay period — weekly, fortnightly or monthly, depending on how wages are calculated.

• Gross pay — total earnings for the period before any deductions.
• Each deduction, itemised separately — in particular the statutory ones: Gibraltar PAYE income tax and the employee Social Insurance contribution.
• Any other authorised deductions — for example occupational pension contributions, attachment-of-earnings orders, union dues or agreed voluntary deductions.
• Net pay — the amount actually payable to the employee after all deductions.
• The prescribed identifying particulars — employer and employee details and pay-period information as set out in the section 52 Schedule forms.
• You can confirm current PAYE and Social Insurance rules with the Gibraltar Income Tax Office or via gibraltar.gov.gi.

How to create and read a Gibraltar payslip step by step

1. Enter the employer particulars — name and address — as prescribed by the section 52 Schedule forms.
2. Enter the employee particulars — name, payroll number and Social Insurance number where held.
3. Choose the PAYE tax system that applies to the employee: the Allowance-Based System (ABS) or the Gross Income Based System (GIBS).
4. Set the pay period and payment date (Gibraltar uses the DD/MM/YYYY date format).
5. Enter gross pay and any additional earnings — overtime, bonus or allowances — in GIP (£).
6. Let the generator calculate Gibraltar PAYE and Gibraltar Social Insurance automatically, then check that gross pay minus total deductions equals net pay.
7. Download the finished statement as a PDF for the employee, and keep your own copy — payroll records should be retained for seven years.
8. To sense-check the net figure, cross-reference our take-home pay calculator.

Each line explained

Reading a Gibraltar payslip is easiest if you work top to bottom: earnings first, then deductions, then the net figure that lands in the employee’s account.

• Gross pay — the employee’s total earnings for the period (basic pay plus any overtime, bonus or allowances) before tax and Social Insurance.
• Gibraltar PAYE income tax — income tax withheld under the employee’s system, either ABS or GIBS. This is Gibraltar income tax, not UK PAYE, and is administered by the Gibraltar Income Tax Office.
• Gibraltar Social Insurance (employee) — a separate capped contribution deducted from the employee. It funds Gibraltar’s social security scheme and is not UK National Insurance, despite the similar idea.
• Other authorised deductions — pension, union dues or voluntary items, shown separately where they apply.
• Net pay — gross pay minus all deductions; the amount the employee actually receives.
• Employer Social Insurance — a contribution paid by the employer on top of wages. It is not deducted from the employee, but it may be shown on the statement for transparency.

ABS versus GIBS: Gibraltar’s two income tax systems

This is the single biggest thing generic tools miss. Gibraltar taxes individuals under one of two parallel systems, and the employee is taxed under whichever produces the lower liability.

Under the Allowance-Based System (ABS), the employee receives personal allowances and reliefs, and tax is charged on the income remaining after those allowances at progressive rates. Under the Gross Income Based System (GIBS), no general allowances apply; instead tax is charged directly on gross income using a banded set of rates. High earners and those with few reliefs often pay less under GIBS, while employees with significant allowances may be better off under ABS.

On the payslip itself the practical effect is simple: the PAYE figure differs depending on which system applies, so the generator asks you to select ABS or GIBS and computes accordingly. Because the systems and their rates are set by the Income Tax Office, always verify current figures against <a href="https://www.gibraltar.gov.gi/finance-gaming-and-regulations/income-tax-office">the Income Tax Office</a>.

Currency, mandatory versus optional fields, and record-keeping

Gibraltar payslips are denominated in the Gibraltar Pound (GIP), symbol £, which is pegged 1:1 to sterling — GBP circulates freely too. Amounts follow the UK convention: a dot for the decimal separator and a comma for thousands (for example £1,234.56).

• Mandatory — gross pay, each itemised statutory deduction (PAYE and Social Insurance), net pay, and the prescribed employer, employee and pay-period particulars.
• Optional but common — payroll number, Social Insurance number, employer logo, and a breakdown of overtime, bonus and allowances.
• Retention — keep payroll records, including copies of payslips, for seven years; PAYE and Social Insurance are normally remitted to the Income Tax Office by the 15th of the following month.

A note on legitimate use

This generator is for producing genuine payslips — for real wages actually paid to real employees, or for self-employed people documenting their own income. It is not for fabricating proof of income for a mortgage, a loan, a rental application or a visa. Falsifying a payslip is fraud, and in Gibraltar it can also breach the Employment Act and tax obligations. Always base a statement on the wages you actually pay, and confirm your PAYE and Social Insurance responsibilities with the <a href="https://www.gibraltar.gov.gi/finance-gaming-and-regulations/income-tax-office">Gibraltar Income Tax Office</a> or via <a href="https://www.gibraltar.gov.gi">gibraltar.gov.gi</a>.