Pay or salary payment arrangements policy template
Our pay or salary payment arrangements policy template provides information regarding pay or salary payment arrangements.
- 2 pages / 441 words.
- Last updated 10/02/2025.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Pay or salary payment arrangements policy
1 Overview
1.1 The purpose of this policy is to provide information and procedures regarding salary payment arrangements.
2 Scope
2.1 This policy is applicable to all employees of [company name].
3 General principles
3.1 Payment arrangements
3.1.1 Salaries for permanent and temporary members of staff (excluding agency workers) are paid monthly by transfer directly into each individual's bank or building society account.
3.1.2 Payments to employees are made on the [date] day of each month. [Payments to casual workers, freelancers and contractors are made on the [date] day of each month.] However, if this day falls on a weekend or bank holiday, salaries will go into individuals' accounts on the [previous/following] working day.
3.1.3 Employees will receive an itemised pay statement of their earnings and deductions on the date on which they are paid.
It is the responsibility of each employee to ensure
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This pay or salary payment arrangements policy includes the following sections:
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Payment arrangements
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Deductions
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Benchmarking
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Pay reviews
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Queries
Send to appropriate internal recipients such as employees, workers, contractors etc. and request confirmation that is has been read and understood.
Issue during onboarding / after changes / planned refresher.
Compliance
Compliance
This Pay or salary payment arrangements policy template incorporates relevant UK laws and HR standards, including those listed below:
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Equality Act 2010: This Act ensures that employees are not discriminated against in their pay arrangements based on protected characteristics, such as gender, age, race, religion, disability, or sexual orientation.
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National Minimum Wage Act 1998 (NMWA): This legislation sets the minimum wage rates that employers must pay to workers, depending on their age and employment status. The pay arrangements policy should outline how the organization complies with the NMWA and ensures that all employees receive at least the minimum wage.
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Employment Rights Act 1996: This Act includes provisions for employee contracts and specifies that employees have the right to receive a written statement of their pay arrangements, including details of their salary, payment frequency, and any deductions.
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Working Time Regulations 1998: These regulations set limits on working hours, including overtime arrangements, to ensure that employees are fairly compensated for any additional time worked.
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Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000: These regulations protect part-time workers from being treated less favorably in their pay arrangements compared to full-time workers doing similar work.
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Agency Workers Regulations 2010: These regulations ensure that agency workers receive equal treatment in pay arrangements compared to direct employees after a qualifying period of employment.
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Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018: These regulations require employers to provide more detailed information about pay arrangements and benefits in the written statement of employment particulars.
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Trade Union and Labour Relations (Consolidation) Act 1992: This Act addresses issues related to collective bargaining and employee representation, including pay negotiations and pay-related disputes.
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Data Protection Act 2018 (DPA): The DPA governs the processing and handling of personal data, including pay-related information. The pay arrangements policy should ensure compliance with data protection principles in managing and protecting employee pay data.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Pay or salary payment arrangements policy template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
