Underpayment of wages
There could be a number of reasons why you have received less pay than you were expecting. Your pay could be less than normal because:
- your employer has made a planned deduction from your pay for a specific reason, or
- your employer has made a miscalculation – for example, when you have increased your working hours but payroll systems have not been updated properly.
If you’re unclear about why you have been paid less – or disagree with your employer about the explanation they have given – this guide will help you resolve the issue and get paid what you’re entitled to.
Deductions from your pay
Your employer is not allowed to make a deduction from your pay or wages unless:
- it's required or allowed by law, such as National Insurance (NI) contributions, income tax or student loan repayments
- you and your employer agree the deduction in writing
- your contract of employment states that your employer can do this
- there is a statutory payment due to a public authority (such as with a Council Tax Attachment of Earnings Order)
- you've not worked due to taking part in industrial action (see our strike hub for more information)
- it's the result of a court order or employment tribunal decision.
The Employment Rights Act 1996 affords protection against unlawful deductions from wages to employees, agency workers (but not self-employed people) and apprentices. If your employer is attempting to deduct a previous overpayment, please see overpayment of wages.
Miscalculations
While the employer is responsible for ensuring you are paid correctly and providing a payslip, employees have a responsibility to check that their pay and payslip are accurate - to ensure they are being paid correctly and taxed appropriately. Checking your payslip is important to catch any miscalculations or mistakes.
Pay particular attention if changes to your working pattern or absence from work impact the amount you are paid.
If you have not been paid the amount you were expecting, talk to your employer to check what has happened as soon as you notice the error.
Common scenarios where miscalculations arise:
- you’ve formally increased your working hours but payroll systems haven’t been updated
- you’ve been promoted or are formally acting up but payroll systems haven’t been updated
- you’ve returned to work after long term absence (sickness, parental leave) but you’re still being paid a reduced rate (or have not been paid at all).
Errors do happen, however - once they have been discovered - the RCN expects employers to resolve the issue as soon as possible, to minimise any detriment or financial hardship to staff. Employers may need to investigate and review their payroll processes to ensure the error is avoided in future.
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Step 1: Check and talk about it |
• check whether it's a lawful deduction (see above) |
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Step 2: If unresolved, put it in writing |
Write to the employer/agency using our letter template (includes an example) and:
• always be polite, clear and firm The bold words in the sample letter show where you need to enter the information. |
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Step 3: If unresolved, write again |
If you do not receive a response to the first letter, write again using our letter template and: • amend the letter, noting when you sent the first attempt, and add that this is your second and final attempt |
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Step 4: Talk to us |
If you do not receive a response to the second attempt within the final five days, contact us. We will advise you what to do next. You may have grounds for a grievance or possibly an Employment Tribunal (ET) claim for unauthorised deductions from wages under Part II Employment Rights Act 1996 (or equivalent legislation in Northern Ireland), but strict time limits apply (three months (less one day) from the date of the last underpayment). |
Employers sometimes need to make an additional one-off payment - for example, when:
- paying back pay following the late implementation of a pay rise
- when paying a bonus or non-consolidated payment, or
- when rectifying an underpayment.
These one-off amounts can affect your Universal Credit (or some other benefit entitlements) for the following month.
If you are expecting such a payment and are worried that it may cause you to lose your benefit entitlement, it may be possible to ask your employer to make the payment in a number of instalments; your benefits may still be affected, but the difference should be smaller and potentially more manageable. We have produced a template letter to help you to request this.
If you are not sure whether you'd be better off receiving the payment as a lump sum or in instalments, contact us to be put in touch with our Welfare service, who can discuss your options with you.
See more about .
If you can't sort things out directly with your employer (either informally or formally via a grievance), it is important to contact us for advice. We will explore the options with you.
With our support, one option could be to bring an employment tribunal claim for unlawful deduction from your wages. To do this in England, Scotland and Wales, has to be notified, and they will offer you the opportunity to use . In Northern Ireland, you'll need to notify the and follow a similar process. Note that for RCN representation, you must have been in the correct category of membership at the time of the underpayment.
A claim to an employment tribunal can be made within three months (less one day) of the underpayment. If there is more than one deduction from your wage over a period of time, you could potentially claim back pay for the earlier deductions. However, there may be a two-year cap on the back pay you could claim, depending on the country in which you work. Be sure to gather as much evidence as you can about the underpayments that have been made to assist the tribunal with its decision.
If you miss the three-month time limit and cannot make a claim to an employment tribunal, you can pursue your claim through the county court via a breach of contract claim. The limitation period is six years from the date of the breach. In Scotland, this should be done through the sheriff’s court within five years of the unlawful deduction.
Timing is very important. Make sure you are within the time limits for making a claim to the employment tribunal. Our employment tribunal guide has more information.

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Page last updated - 26/08/2025