Guides › Work and Employment › Deductions From Your Pay: What Your Employer Can and Cannot Take
Deductions from Your Pay: What Your Employer Can and Cannot Take
Your employer can only take money from your pay when the law requires it, your contract allows it, or you agreed in writing beforehand. Even then, most deductions cannot take your pay below the National Minimum Wage. In retail and hospitality, deductions for till shortages or stock losses are capped at 10% of your gross pay each pay period. If money was taken unlawfully you can claim it back.
At A Glance
Your Rights
What the rules say, with a link to the official source for each.
When Deductions Are Allowed
Allowed
Tax, National Insurance and student loans; deductions your contract allows or you agreed to in writing; payments to a public authority; days you were on strike; recovering an earlier overpayment of wages or expenses; and court orders. source
Retail and Hospitality
For cash shortages or stock losses, your employer can take no more than 10% of your gross pay in any pay period. The rest is taken from later pay days. If you leave, the rest can be taken from your final pay. source
Minimum Wage Protection
A deduction cannot normally take your pay below the National Minimum Wage, even if you agreed to it. Exceptions include tax and National Insurance, loans or advances, accidental overpayments, accommodation and things for your own benefit such as union fees or pension. source
Getting Money Back
Steps
Try to sort it out with your employer. If that fails, contact Acas, Citizens Advice or your union. You can take a claim to an employment tribunal. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 6 monthsTribunal time limit (minus 1 day)From the pay day of the deduction, if on or after 1 October 2026
- 10%Retail shortage capOf gross pay per pay period
Steps to Take
Step 1 of 4
Find the deduction on your payslip and the clause in your contract it relies on.
Step 2 of 4
Ask your employer in writing what it was for and what allows it.
Step 3 of 4
If it was not allowed, ask for it back and raise a grievance.
Step 4 of 4
Tell Acas and claim at a tribunal if it is not repaid.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Acas Helpline
Free and confidential. 0300 123 1100, Monday to Friday, 8am to 6pm.
Acas Early Conciliation
You must tell Acas before you make most tribunal claims. It is free.
Citizens Advice or Your Trade Union
Free help to check your case and work out what you are owed.
Good to Know
Small things that make your complaint stronger.
Never sign an agreement to deductions you do not understand. Ask for a copy first.
Rules here are for England, Scotland and Wales. Northern Ireland has its own employment law, the Labour Relations Agency and industrial tribunals; see nidirect.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 15 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- gov.uk/understanding-your-pay/deductions-from-your-pay Checked 15 October 2026
- acas.org.uk/contact Checked 8 October 2026
- acas.org.uk/early-conciliation/how-early-conciliation-works Checked 8 October 2026