Pay or salary payment arrangements policy template

Pay or salary payment arrangements

Overview

The purpose of this policy is to provide information and procedures regarding salary payment arrangements.

Scope

This policy is applicable to all employees of [company name].

General principles

Payment arrangements

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.

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.

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 that [Company]:

• Has details of his/her bank or building society account number and sort code.
• Is advised of any changes to his/her bank or building society account.
• Is told about any payment anomalies that the employee discovers (e.g. overpayment of wages).

Deductions

Appropriate deductions will be made from pay including income tax and National Insurance contributions (NICs), which are subject to each employees earning level, family status and the number of hours worked.

Benchmarking

[Company] is committed to ensuring that:

• Its salaries remain competitive in the labour market, through conducting an [annual] pay review, paying individuals in line with normal industry practice and standards, and benchmarking salaries against other employers.
• It recognises individual performance and rewards employees financially for this through [merit pay/bonuses].
• It regularly consults staff and employee representatives on pay levels and during the [annual] pay review.
• Individuals are not discriminated against because of gender, marital or civil partnership status, race, religion or belief, sexual orientation, age, disability, gender reassignment, pregnancy and maternity, or because they work part time or on a fixed-term contract.
• Workers are paid at the level of at least the national minimum wage or national living wage whichever is applicable.

Pay reviews

Employees' basic rates of pay will normally be reviewed annually in [April], although any increases will be at the absolute discretion of [Company]. Reviews may take place at other times of the year to reflect a change in circumstances. Any resulting changes to pay will be notified to employees in writing.

Queries

Employees who have any queries or problems concerning payment of their salary should contact [name of manager].

Unless agreed otherwise, any pay errors, whether of over or underpayment, will be rectified in the next salary payment.

This policy [does not] form[s] part of your terms and conditions of employment.

Version: [1.0]

Issue date: [date]

Author: [name, job title]