Pay is the basic amount you should be paid, either monthly or hourly pay rate. Your wages are the amount you are paid in connection to your job.
Wages could include bonuses, commission, holiday pay, sick pay, maternity pay, gift tokens, vouchers or luncheon vouchers.
Wages will not include loans, expenses, pension, redundancy payments and payments in kind, gratuities or lump sums on retirement.
When you commence employment, your employer should advise you when you will be paid, e.g. on the last working day of the month, on the 28th of each month etc. They should also advise how you will be paid, cash, cheque, BACS.
Every employee has the right to know how often and how much they will be paid.You are also entitled to a written pay statement from your employer each time you are paid, or shortly before. The exception to this is if you are:
- A contract or freelance worker
- A member of the police service
- A merchant seaman, master or crew member working in share fishing and paid solely by a share in the profits or gross earnings of a fishing vessel
Your payslip must contain the following information:
- Gross wages (wages before any deductions)
- Individual amounts of any fixed deductions (e.g. trade union subscriptions)
- Individual amount of any variable deductions (e.g. tax)
- Net wages (after any deductions)
- Amount and method for any part-payment of wage (such as cash payment and BACS)
Additionally, employers may choose to include the following information (this is not a requirement):
- National Insurance Number
- Tax codes
- Pay rate
- Additional payments – overtime, tips, bonuses
If you have any issues regarding you payslip, in the first instance you should speak to your employer to sort the problem out informally. You may choose to seek help or advice from an employee representative or trade union.
Following this, you may decide to make an application to an Employment Tribunal. Before doing so, ensure that you have a copy of your payslip and contract of employment and that you have read these thoroughly to see if they explain why you have not been fully paid.
If you need advice about an employment matter,
contact Legal Advice Helpline on 0845 600 6980 to speak to one of our specialist advisors about employment law.