Salary sacrifice minimum wage

MX5huggy

Using Salary Calculator https://www.thesalarycalculator.co.uk/hourly.php#modal-close

£10.42 for 37.5 hours a weeks is just shy of £1700 per month. 

If you’re paid a Salary that is simply divided by 12 to pay you monthly I can’t see that working days in the month is relevant. 

Marcon

Jonboy_1984 said:

Pat38493 said:

Pat38493 said:

Marcon said:

An employer cannot count the value of a benefit in kind such as a car or petrol towards its obligation to pay the national minimum wage. Allowances don't generally count towards minimum wage pay unless they are consolidated into a worker's standard pay or they relate to a worker's performance.

ok, so since the car allowance is itemised as a separate item to the monthly salary, it doesn't count when estimating the level that I could sacrifice down to.  Thanks.

As a kind of point of order here, how would the company actually get into trouble for not paying minimum wage to me?  If they would only get into trouble if I personally complained, and I had no intention of complaining because I am doing it on purpose, I guess that wouldn't make any difference?  Would payroll systems typically block this automatically with some kind of error "computer says no".

HMRC actively look for it during their routine inspections, and go over last three years payroll typically.
 

They both fine and name and shame employers who they find falling short.

...and employers can't 'avoid' the law just because an employee is happy for them to do so (think 'if you pay me cash and don't deduct tax or NI I won't tell anyone if you don't....').

Quite apart from HMRC taking an interest, auditors (both internal and external) are likely to check this area, and good payroll systems normally have some sort of flag to prevent the employee being paid below minimum wage requirements.

Troxy

There are adjustments for holiday pay and sick pay for the national minimum wage so unfortunately not quite as simple as dividing annual salary by 12 (assuming paid monthly) I’ve been caught out by this in the past. There is a whole complex manual on this from HMRC

https://www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual

Pat38493

Troxy said:

There are adjustments for holiday pay and sick pay for the national minimum wage so unfortunately not quite as simple as dividing annual salary by 12 (assuming paid monthly) I’ve been caught out by this in the past. There is a whole complex manual on this from HMRC

https://www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual

Ok but if I keep my headline basic sal to 2K  in the calendar month or more, I should be safe right?

RogerPensionGuy

Just to add I know people working 4on4off shifts of 12 hours. 

1 hour unpaid meal break. 

As their pay period is Monday to Sunday and paid monthly, they use £10.42 X11 Hours X 4 Days X 52 Weeks ÷ by 12 Months = the minimum gross pay that must show on their monthly payslips. 

To note, I think some people then top up a SIPP with cash and claim back 20% via HMRC. 

A bit of working out, but helpful if wanting to fill pensions.