Deductions From Wages

Can my employer deduct money from my wages? Voluntary regular deductions
(Updated 17 November 2005)

Any further voluntary deductions may be regular, i.e. deducted every time you are paid, or one-off. In either case, to be lawful, any such deductions must be authorised by a provision of your employment contract or by a document that you have signed in advance.

Common examples of regular deductions are:

  • trade union deductions
  • contributions to a personal pension scheme
  • social club membership fees
  • hospital fund contributions
  • loan repayments, including advances of wages
  • payments towards the purchase of clothing or equipment
  • stock or till shortages
  • contributions towards the use of the private use of a company car or van
  • contributions towards a company benefit, e.g. private medical insurance, meals
  • payments towards a benefit provided under a salary-sacrifice scheme.

Under separate trade union legislation, it is unlawful for an employer to make a deduction of an amount that would be a contribution to a trade union's political fund if the member has instructed the employer in writing not to make the deduction.

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More FAQs Related to Deductions from Wages:


Can my employer recover an overpayment of wages from my next/future wages?
Can my employer deduct holiday pay from my final wages?

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