Deductions from wages factsheet

Published on: 19/01/2015

No deductions may be made from a worker’s wages unless:

  • The deduction is allowed by law e.g. deduction of PAYE and NI
  • The deduction is allowed by the worker’s contract
  • The worker has agreed in writing to a deduction being made from his wages e.g. he has signed a loan agreement which provides for the repayments to be deducted.

A worker is widely defined to include anyone working under a contract of service, apprenticeship or who individually undertakes to do or perform work or services personally.