Deductions and related issues

Find out the rules for deductions and requirements to spend or pay money.

We also have information on how to fix an overpayment.

Deducting pay

Taking money out of an employee’s pay before it’s paid to them is called a deduction.

An employer can only make a deduction in limited situations.

Learn about deductions, including:

  • deductions that an employee authorises
  • deductions under an award, agreement or employment contract
  • examples of reasonable deductions.

Go to Deducting pay now.

Requirements to spend or pay back money

In limited situations, an employer can require an employee to spend or pay back money.

Visit Requirements to spend or pay back money to learn more. We also have information on cashback schemes, which are against the law.

Overpayments

Overpayments can happen:

  • when an employer mistakenly believes an employee is entitled to the pay, or
  • because of a payroll error.

Find out more about overpayments, including how to fix one, at Overpayments.

Tools and resources

Related information