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UK: Pay and benefits

Original and updating author: Darren Newman

Consultant editor: Jo Broadbent, Hogan Lovells International LLP

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)
  • Organisations with 250 or more employees must publish information on the difference in rates of pay between male and female employees. (See Gender pay gap reporting)
  • Workers aged 16 and over must be paid at least the statutory national minimum wage. (See Minimum wage)
  • Employers may provide employees with a workplace pension. Under a statutory auto-enrolment scheme, employers must enrol eligible employees into 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)