National Minimum Wage and National Living Wage - calculating minimum wage pay

Deductions and payments that reduce minimum wage pay

Guide

The following deductions or payments will reduce a worker's National Minimum Wage or National Living Wage pay.

  • deductions for your own use or benefit
  • deductions or payments from the worker to the employer for expenditure connected with the job - for example tools, uniform or travel costs - however if you refund the worker for these payments the refund counts as minimum wage pay in the pay reference period in which it is made
  • payments by a worker to another person for things connected with the job - for example tools or uniform - however if you refund the worker for these payments the refund counts as minimum wage pay in the pay reference period in which it is made
  • certain deductions from pay and payments by the worker for accommodation provided - see National Minimum Wage and National Living Wage - benefits in kind and accommodation

You cannot make any of these deductions if making it would drop the worker's pay below the minimum wage rate.