Key points

  • All employees are entitled to an individual written pay statement.
  • Pay slips/statements must be given on or before the pay date.
  • Fixed pay deductions must be shown with detailed amounts and reasons for the deductions - e.g. Tax and national insurance.
  • Part time workers must get the same rate as full time workers.
  • Most workers are entitled to be paid the National Minimum Wage and National Living Wage.

Pay is one of the most important factors in our working life. It's a sensitive subject - the way it's handled can have a big impact on morale and productivity. The challenge for most companies is to set consistent pay levels that give value for money while rewarding workers fairly.

All employees are entitled to an individual written pay statement on or before the time they are paid. The statement must show gross pay and take-home pay, with amounts and reasons for all variable deductions.

Fixed deductions must also be shown, with detailed amounts and reasons. Alternatively, fixed deductions can be shown as a total sum, provided a written statement of these items is given to each employee in advance - or at the time of issue of the first pay statement showing the total sum. After this, a statement should be given at least once a year.

If there is a dispute relating to the itemised pay statement provisions, every effort should be made to resolve it in the workplace, with recourse to formal internal procedures if necessary. Only if the problem persists should it be referred to an employment tribunal. If the employment has come to an end, the reference must be made within three months of the end of the employment.

Help for small firms on pay

Our guide on handling pay and wages is aimed at small firms and line or team managers in larger organisations. It offers steps you should consider following to prevent pay problems arising.

Workplace trends of 2016 report

Hear from leading workplace experts about the issue of pay in 2016 by downloading the pdf icon Workplace trends of 2016 [680kb] report.

Watch our expert adviser talk about one of the most asked questions to the Acas Helpline.

Acas has published a new step-by-step guide Help for small firms: Handling pay and wages to help employers get pay issues right.