Make debt deductions from an employee's pay
What counts as earnings
You can only make a deduction from the following earnings:
- wages, fees, bonuses, commissions, overtime pay or any payments on top of wages
- private or occupational pensions and compensation payments
- Statutory Sick Pay
- contractual sick pay
- contractual maternity pay
- contractual paternity pay
- contractual adoption pay
- contractual redundancy pay
Statutory pay is money that your employees are entitled to by law. Contractual pay is what you agree with your employees in addition to statutory pay.
What does not count as earnings
You cannot make a deduction from any of the following:
- amounts paid by a department of the government of Northern Ireland or any country outside the UK
- any social security pension, allowance or benefit
- tax credits
- any pension or allowance paid for disability
- guaranteed minimum pension within the Social Security Pensions Act 1975
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Adoption Pay
- Statutory Redundancy Pay