Distressed at one’s pay reduction being increased? (3,2)
I believe the answer is:
cut up
'distressed' is the definition.
(I've seen this before)
'reduction being increased?' is the wordplay.
'reduction' becomes 'cut' (cut is a kind of reduction).
'being increased?' becomes 'up'.
'cut'+'up'='CUT-UP'
'at one's pay' acts as a link.
I am not very happy about this link. Some or all of it may belong to another bit of the clue.
Can you help me to learn more?
(Other definitions for cut up that I've seen before include "Happy? No" , "affected by separation" , "Dice, chop" , "Maize, rye, corn, etc" , "so treated by another driver?" .)