Saving through payroll deduction

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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.

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