Increasing salary sacrifice to max but above NMW

cosyc

I am looking to increase my SS into my pension to the maximum but understand I need to keep my salary above the NMW. 
I have calculated NMW from April 25 £12,21 x 37.5 x52 at £23809.  First is that corrrect? 

Next I also contribute £100 pcm into the works save as you earn share scheme. It’s a three year contract to the buy the shares or get the money back. Money goes to a third party out of my wages. 

Do I need to keep my salary after sacrifice above £23809 or £23809 plus £1200 to allow for the share payments. 

I tried looking it up and found this on HMRC website but I am none the wiser
https://www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual/nmwm11190

thanks 

Hoenir

cosyc said:

I have calculated NMW from April 25 £12,21 x 37.5 x52 at £23809.  First is that corrrect? 

No. As a tax year isn't precisely 52 weeks. It's actually a few days more. 

Ignoring leap years.  The hours you are paid for are 365 days less 104 at weekends = 261 days  @ 7.5 hours = 1957.50 hours @ £12.21 = £23,901.08p. 

Cobbler_tone

Your employer should prevent you sacrificing below minimum wage.

DRS1

cosyc said:

I am looking to increase my SS into my pension to the maximum but understand I need to keep my salary above the NMW. 
I have calculated NMW from April 25 £12,21 x 37.5 x52 at £23809.  First is that corrrect? 

Next I also contribute £100 pcm into the works save as you earn share scheme. It’s a three year contract to the buy the shares or get the money back. Money goes to a third party out of my wages. 

Do I need to keep my salary after sacrifice above £23809 or £23809 plus £1200 to allow for the share payments. 

I tried looking it up and found this on HMRC website but I am none the wiser
https://www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual/nmwm11190

thanks 

I think the Gov.UK page is saying you do not need to worry about the £1200 from a NMW point of view so you can salary sacrifice down to £23809 (assuming that is your NMW).

I seem to recall there used to be warnings for the Share Incentive Plan to do with not paying too  much but I don't recall what they were about (Benefits?) and I don't remember them for SAYE Schemes.

Cobbler_tone

We have just put in a wage increase (in some cases 10%+) to allow all employees to contribute 6% pension and the company share plan, whilst keeping above NMW.

Secret2ndAccount

Whilst your annual calculation is broadly correct, each and every pay packet must be above NMW. Is your pay exactly the same every month? You might need to tweak your numbers slightly or allow a bit of margin.