News article

Consultation on National Minimum Wage rules

4 January 2019

Employer views sought on the National Minimum Wage rules regarding salaried workers and the operation of salary sacrifice schemes

Legislation provides a set of rules over how compliance with the National Minimum Wage is calculated when regular salaries are paid. Certain conditions must be met in order for work to qualify as salaried hours work under the National Minimum Wage Regulations. This consultation seeks views on how effective these rules are in preventing worker exploitation.

This consultation seeks views on proposed changes to the National Minimum Wage Regulations which relate specifically to salaried hours work. In particular, the government would welcome your views on whether, and if so how, they might amend the regulations to include additional payment cycles and fixing the definition of the calculation year for employers, without any detriment to workers.

Salary sacrifice schemes are used in some workplaces whereby a worker agrees with an employer a lower rate of gross pay in exchange for goods or services (e.g. childcare vouchers, or bicycles). National Minimum Wage regulations include provisions designed to protect workers from unfair deductions from their wages. This consultation also seeks views on the practical operation of these provisions and their effect on workers on the minimum wage.

How to respond to the consultation
You can respond to the consultation by:

The deadline for responses is 11:45pm on 1 March 2019.

Consultation on salaried workers and salary sacrifice schemes: changing the National Minimum Wage rules.