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UK: Pay and benefits

Original and updating author: Darren Newman
Consultant editor: Jo Broadbent

Summary

  • Pay is subject to relatively little statutory regulation. (See General)
  • There are no specific legal requirements in relation to the method and timing of payment of wages, although the intervals at which payment is made must be specified in the employee's written statement of employment particulars, and employees have the right to be provided with a written itemised pay statement. (See Payment of wages)
  • Workers have the right not to have any deduction made from their wages unless the deduction is authorised by a statutory or contractual provision, or a separate agreement. (See Deductions)
  • Employees must receive equal pay for equal work carried out by a comparator of the opposite sex in the same employment. (See Equal pay)
  • Workers aged 16 and over must be paid at least the statutory national minimum wage. (See Minimum wage)
  • In addition to the state pension, employers may provide employees with workplace pensions. While workplace pension provision has traditionally been voluntary, under a statutory scheme being introduced progressively up until 2017, employers must enrol eligible employees in a workplace pension scheme meeting certain requirements. (See Pensions)
  • Employers must deduct income tax and national insurance contributions from their employees' pay under a statutory "pay as you earn" (PAYE) scheme, and remit the sums deducted to HM Revenue and Customs, along with their own national insurance contributions. (See Income tax and social security)
  • Employees who are unfit to work because of sickness or injury are generally entitled to receive flat-rate statutory sick pay from their employer for up to 28 weeks of absence, from the fourth day of absence. (See Pay for employees not at work)