SIA approved contractors and pay deductions
When you can make deductions from staff pay and how to stay compliant with the law.
If your employee agrees, you may make deductions from their pay to cover the cost of optional benefits.聽聽聽
If you do, you must always make sure to:聽
- explain the deductions clearly聽to聽your staff聽聽
- keep written evidence that your staff agreed to the deductions聽
- never pay less than National Minimum Wage聽
滨苍蝉耻谤补苍肠别听
You may offer your staff optional insurance benefits, such as:聽
- health, medical, or life insurance聽
- cover for loss of earnings or unplanned absence聽
- cover for HMRC compliance checks or legal defence聽
You can make deductions from your employees鈥� pay to cover the costs of these optional insurance benefits. If you do, you must:聽
- clearly explain what the insurance covers聽
- give staff a genuine choice to opt in or out聽
You must pay for your business insurance yourself. You can never pass these costs to your staff. You must also cover subcontractors if they do not have their own insurance.聽Make sure that you have enough insurance to meet your legal and contractual obligations.聽
Other benefits聽
You may also make deductions from staff pay to cover the costs of things like聽gym membership or private healthcare.聽聽
If you do, you must:聽
- include the deduction in the employment contract or terms and conditions聽
- show the deduction clearly on the payslip聽
You must manage your payroll system clearly and effectively and be able to聽demonstrate聽how it works.聽
Checking聽that you have paid the minimum wage聽
When聽calculating whether聽you have paid the National Minimum Wage, you must deduct certain costs first, such as:聽聽
- 耻苍颈蹿辞谤尘蝉听
- travel between sites聽(if聽it鈥檚聽for your benefit)聽
- job-related items聽for which聽staff pay and are not reimbursed聽聽
- 迟补虫听
- National Insurance payments