Saving through payroll deduction


What is payroll deduction?

You may have heard of the term ‘payroll deduction’ or ‘salary deduction’ before. These terms simply describe the process where money is taken from your gross pay each pay period, for mandatory and voluntary reasons.

Mandatory deductions must be made each month, and can be things like tax, student loan repayments and pension. Voluntary deductions are optional, and can be things like insurance premiums, retirements and company benefits.

Benefit of payroll deduction

As a credit union, we run a payroll deduction service with a number of employers, including the Ministry of Defence, HM Prison & Probation Service, and various Police forces throughout the UK.

If your employer has signed up to become a payroll partner, all employees who are members of the credit union can repay their loans directly from their salary, or make monthly savings contributions.

This ensures that payments are made regularly and on time, keeping your credit score in check and building up your savings pot without lifting a finger!

  • The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

Related content

Your cookie preferences

We use cookies on our website to make your online experience better. Please see our cookie notice for further details or agree by clicking the 'Accept' button.

Your cookie settings

Below you can choose which kind of cookies you allow on this website. Click on the "Save cookie settings" button to apply your choice.

FunctionalOur website uses functional cookies. These cookies are necessary to let our website work.

AnalyticalOur website uses analytical cookies to make it possible to analyse our website and optimise for the purpose of usability.

Social mediaOur website places social media cookies to show you 3rd party content like YouTube and Facebook. These cookies may track your personal data.

AdvertisingOur website places advertising cookies to show you 3rd party advertisements based on your interests. These cookies may track your personal data.

OtherOur website places 3rd party cookies from other 3rd party services which aren't analytical, social media or advertising.