Minumum Wage calculation help

Whatdo

Hi
I have a basic day rate of 84 for an 8 hour day. I also have holiday pay of 9.04 and a travel allowance of 16.

Are both holiday pay and travel allowance included in the minimum wage or are they benefits in kind and disregarded.

The agency take 38% inc Vat

all a bit confusing to me, hopefully a knowledgeable person can shed light.

Cheers

Lingua

Is travel allowance for getting to and from your job (e.g. travelling to/from home), or between jobs while on shift?

Also, how old are you as that affects NMW.


This might help:
https://www.gov.uk/national-minimum-wage-rates

Also may be worth going to speak to Citizens Advice.

Lingua

Whatdo

Thanks,
I am 60 and the travel allowance is to travel to and from place of work

getmore4less

What are you getting gross before tax?

The holiday pay is low for £84pd should be 12.07%.

getmore4less

Holiday does not count travel can.

Whatdo

getmore4less wrote: »

What are you getting gross before tax?

This work is subject to an agency fee. Sometimes a single agency commision generally at 15% plus vat in which case the gross amount paid into my account would be 109.04 - 19.62 =£89.41

however my concern surrounds another situation where there is a HUB to which several agencies subscribe in this case the HUB charges me 10% plus vat on top of the agency. Depending on the agency that subscribes through the HUB my total deductions including VAT can be between 30 and 35% inc Vat

If the travel to and from work is excluded then too much is being taken and falls below the minimum.

Am I correct?

Cheers and thanks for helping

Lingua

You don't include travel between work and home, only travel between work locations (e.g. site-to-site). You should be earning £7.20 an hour (living wage for over-25).

The allowance for travelling to work is good of your employer, but not part of minimum wage calculations as far as I can see.

Check pg.23 in:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/555400/beis-16-30-calculating-minimum-wage.pdf

In the same document, pg.32 outlines that time away from work - even that which an employer pays you for (e.g. holidays) - does not count towards minimum wage calculations.

So, at a rate of £84 for 8 hours' work, minus the 34% agency fee, you are earning £6.51/hr, or 69p less than your statutory minimum wage.

The Citizens Advice Bureau page on agency fees may also be helpful:
https://www.citizensadvice.org.uk/work/rights-at-work/agency-workers/can-your-agency-charge-you-fees/

If I've made any errors in this, please point them out!


Lingua