Minimum wage calculation for salsac

Pat38493

Just checking how it works here.

If I am contracted to work 37.5 hours per week, the minimum wage on a monthly calendar pay period would be £1693.25.

Therefore if I want to pay the absolute maximum into  pension, I need to keep my wages above that level within the month, excluding car allowance (i.e. I cannot include car allowance in the £1693 amount)?

NoMore

I don't know the answer, but its not your responsibility to ensure minimum wage conditions, its your employer's, so can you not just ask your employer to pay you minimum wage and the rest salary sacrifice to pension.

Pat38493

NoMore said:

I don't know the answer, but its not your responsibility to ensure minimum wage conditions, its your employer's, so can you not just ask your employer to pay you minimum wage and the rest salary sacrifice to pension.

I could, but they might reply that it's not their job to do those kind of calculations for me only to implement the % that I specify or refuse to do so if it's below minimum wage.  They are already quite flexible compared to a lot of employers as they don't seem to mind if I change the % regularly and they give me half the NI savings on salsac back.

xylophone

https://community.hmrc.gov.uk/customerforums/nmwnlw/83af4891-0129-ed11-b5cf-00155d9c6b71

Does anything in the above help?

bluenose1

I agree with your figures. 
The hourly rate for NMW for over age 21 = £10.42
Therefore annual NMW would be £20,319 (£10.42 x 37.5 x 52)
Monthly  NMW £1,693 (£20,319 / 12)

just remember to adjust for any uplift to NMW in April 24. 

Grumpy_chap

Pat38493 said:

Therefore if I want to pay the absolute maximum into  pension, I need to keep my wages above that level within the month, excluding car allowance (i.e. I cannot include car allowance in the £1693 amount)?

I think you may be able to include the car allowance in the NMW amount from a regulatory / tax perspective
Your employer may have rules that prohibit that.
The regulatory / tax prescription may be if the car allowance imposes an obligation to provide a car of a certain calibre and that is deemed to have the effect of reducing salary below NMW.

Hopefully someone will be along shortly to clarify this point, or it might get more informed comment from the Cutting Tax board.

Secret2ndAccount

Do you get paid the same every month? Some places have 4 week months and 5 week months. Every pay packet has to be above NMW

mcc100

Pat38493 said:

Just checking how it works here.

If I am contracted to work 37.5 hours per week, the minimum wage on a monthly calendar pay period would be £1693.25.

Therefore if I want to pay the absolute maximum into  pension, I need to keep my wages above that level within the month, excluding car allowance (i.e. I cannot include car allowance in the £1693 amount)?

Yours may not work in the same way, but I can adjust my percentage monthly online and it will not allow me to go below the minimum wage.

Pat38493

Secret2ndAccount said:

Do you get paid the same every month? Some places have 4 week months and 5 week months. Every pay packet has to be above NMW

Yes it's by calendar month.

mcc100 said:

Pat38493 said:

Just checking how it works here.

If I am contracted to work 37.5 hours per week, the minimum wage on a monthly calendar pay period would be £1693.25.

Therefore if I want to pay the absolute maximum into  pension, I need to keep my wages above that level within the month, excluding car allowance (i.e. I cannot include car allowance in the £1693 amount)?

Yours may not work in the same way, but I can adjust my percentage monthly online and it will not allow me to go below the minimum wage.

No I have to fill in a form and send it to my HR dept by end of the previous month.  I've never tried to put a % that would put me close to NMW so I will see how it goes.

saucer

bluenose1 said:

I agree with your figures. 
The hourly rate for NMW for over age 21 = £10.42
Therefore annual NMW would be £20,319 (£10.42 x 37.5 x 52)
Monthly  NMW £1,693 (£20,319 / 12)

just remember to adjust for any uplift to NMW in April 24. 

For what it’s worth I was looking to work this out recently for the same reason and came up with the £20,319 figure as well.