SPM182400 - Paying and Recovering - SSP/SMP/SAP/SPP/ShPP/SPBP/SNCP: deductions

SSP/SMP/SAP/SPP/ShPP/SPBP/SNCP are a replacement of earnings, not a benefit, so any deductions which the employer would normally lawfully make from wages can also be made from these. This includes:

  • tax and NICs
  • superannuation
  • an overpayment of wages
  • trade union subscriptions
  • pension contributions.

Employment Rights Act 1996, 27.

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Deductions which cannot be made from Statutory Payments

Deductions such as the following cannot be made from SMP/SAP/SPP/ShPP/SPBP/SNCP:

  • Attachment of Earnings Orders, including Council Tax Orders
  • Deductions of Earnings Orders for Child Maintenance and Enforcement Commission (in Scotland, Arrestment of Earnings Orders)

»Ê¹ÚÌåÓýapp attachment of Earnings Act 1971, 24,(2)(c)

If in doubt contact IPD Statutory Payments (Technical) Team for advice.