Weekly pay, holiday and pensions: what temporary workers should expect
If you are registering for temporary work, here is how pay actually works — including the parts that are easy to misunderstand.
Weekly pay is one of the main reasons people choose agency work, and it is also where most confusion sits. This is a plain explanation of how it works when you are engaged through an agency under PAYE.
How you are paid
Where you are engaged directly by the agency under PAYE, income tax and National Insurance are deducted at source before you are paid, in the same way as any other employed role. You receive a payslip for each pay period showing the hours, the rate, the deductions and the net amount.
The Key Information Document
Before you start, you should receive a Key Information Document. It sets out who is paying you, the type of contract, the minimum rate you can expect, how holiday is dealt with, and any deductions or fees. If you have not received one, ask for it — it exists precisely so that none of this is a surprise on your first payslip.
Holiday pay
You accrue holiday entitlement based on the hours you work, in line with statutory requirements. How and when it is paid should be set out in your Key Information Document. Accrued holiday is yours — it is not a bonus and it does not disappear because you are on a temporary assignment.
Pension auto-enrolment
If you meet the qualifying criteria on earnings and age, you will be automatically enrolled into a workplace pension after the statutory postponement period. You can opt out, but consider it properly rather than reflexively — an employer contribution is part of your total pay.
Questions worth asking before you start
- What is the pay date, and what is the cut-off for submitting hours?
- Am I being paid PAYE, and if not, on what basis?
- How is holiday accrued and when is it paid?
- Are there any deductions beyond tax and National Insurance?
- Who do I contact if a payslip looks wrong?
This is general guidance rather than financial or legal advice, and specific arrangements depend on your contract. If something on your payslip does not look right, raise it straight away rather than waiting to see whether it corrects itself.
