Make debt deductions from an employee's pay
Deductions for a non-priority order
Non-priority orders are used for debts from a county court judgment (CCJ).
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Calculate your employee鈥檚 earnings.
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Take off the normal deduction rate from their earnings.
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Take off an extra 拢1 towards your administrative costs (if you want to).
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Pay your employee the remainder of their earnings. You must pay them at least their protected earnings rate.
You can still deduct the 拢1 if it takes your employee鈥檚 income below their protected earnings rate - but not if it takes their income below the National Minimum Wage.
Making a full deduction
Deduct the full amount from your employee鈥檚 earnings if it does not take them below their protected earnings rates.
Example Your employee鈥檚 earnings this payday are 拢190. Their protected earnings rate is 拢150. The normal deduction is 拢25.
You pay your employee 拢164 (拢190 minus 拢26). You send 拢25 to the court and keep 拢1 towards your costs.
When you cannot make a full deduction
Do not carry any unpaid difference over to the next payday if the full deduction would take the employee below their protected earnings rate.
Example Your employee鈥檚 earnings this payday are 拢170. Their protected earnings rate is 拢150. The normal deduction is 拢25.
You can deduct 拢20 this time. You pay your employee 拢149 (拢170 minus 拢21). You send 拢20 to the court and keep 拢1 towards your costs.
On the next payday, their earnings are 拢190. You deduct the normal amount of 拢25.
You pay your employee 拢164 (拢190 minus 拢26). You send 拢25 to the court and keep 拢1 towards your costs.
When you cannot make any deduction
Do not carry the deduction over to the next payday if the employee鈥檚 earnings are below their protected earnings rate.
You have to tell the Centralised Attachment of Earning Payments (CAPS) office you could not make a deduction. Send an email to caps@justice.gov.uk with the:
- court case number
- attachment of earnings order number
- name of the employee
- reason you could not make any deduction
Example Your employee鈥檚 earnings this payday are 拢140. Their protected earnings rate is 拢150. The normal deduction is 拢25.
You cannot deduct anything this time. You鈥檙e not allowed to deduct 拢1 for your own costs. Email the CAPS office to tell them.
On the next payday, their earnings are 拢190. You deduct the normal amount of 拢25.
You pay your employee 拢164 (拢190 minus 拢26). You send 拢25 to the court and keep 拢1 towards your costs.
Paying your employee for a different pay period
Recalculate the protected earnings rate and normal deduction rate if you pay your employee for a different period than usual.
Example You normally pay your employee on the last day of the month. Their protected earnings rate is 拢550. The normal deduction is 拢70.
You include an extra pay day on 9 December.
For the 9 days, calculate your employee鈥檚:
- earnings (拢792.22 divided by 31 days, multiplied by 9 days = 拢230)
- protected earnings (拢550 divided by 31 days, multiplied by 9 days = 拢159.68)
- deduction (拢70 divided by 31 days, multiplied by 9 days = 拢20.32)
You pay your employee 拢206.68 (拢230 minus 拢21.32). You send 拢20.32 to the court and keep 拢1 towards your costs.
Holiday pay in advance
Use the same process if you鈥檙e paying your employee holiday pay in advance.
You鈥檒l need to work out the different rates for:
- the month when you give pay in advance
- the following month when you鈥檇 pay them less than normal
Example You normally pay your employee on the last day of the month. In July you include 5 weeks鈥� worth of pay. Their protected earnings rate is 拢550. The normal deduction is 拢70.
For the normal month plus the extra week (38 days), calculate your employee鈥檚:
- earnings (拢792.95 divided by 31 days, multiplied by 38 days = 拢972)
- protected earnings (拢550 divided by 31 days, multiplied by 38 days = 拢674.19)
- deduction (拢70 divided by 31 days, multiplied by 38 days = 拢85.81)
You pay your employee 拢885.19 (拢972 minus 拢86.81). You send 拢85.81 to the court and keep 拢1 towards your costs.
In August, use the same process to work out their earnings, protected earnings and deduction. You鈥檇 work it out for 24 days (31 days minus 7 days you鈥檝e already paid them for).