Salary Sacrifice - how low can I go?

kimwp

Thanks @jamesd.

I think I want to salary sacrifice down to the NMW, but want to be sure what that is for me as it says on the sal sac form that it's my responsibility to keep it above that.

jamesd

Well, the law says that it's your employer's responsibility and if you go below, they are required to top it up. Which in practice means they will prohibit you from going below in any pay period.

What I did to avoid trouble in any pay period was work out the percentage contribution to get down to minimum wage then deduct a couple of percent for safety margin. To do that I also had to ask for and get an exemption to the normal ban on sacrificing more than 50% of pay, a safety measure to protect those with too little financial understanding from cutting their income too far.

lisyloo

kimwp said:

Thanks @jamesd.

I think I want to salary sacrifice down to the NMW, but want to be sure what that is for me as it says on the sal sac form that it's my responsibility to keep it above that.

You should be able to calculate is as something like

rate * hours in day * 261
e.g.
8.91 * 7.5 * 261 = 17,374.50

depends on age, hours worked etc.