National Minimum Wage Rates 1st October 2011

National Minimum wage:

1st 0ctober 2011

Age 21 and over £6.08 per hour

Age 18 – 20         £4.98 per hour 

Age 16 – 17         £3.68 per hour

Accommodation offset rate

From 1 October 2010, the maximum amount your employer can count towards NMW pay as an accommodation offset is: £4.61 a day £32.27 a week

It makes no difference whether:

your employer takes rent out of your wages

you have to pay rent to your employer after receiving your wages

your employer simply provides the accommodation as part of a package

In all cases, the accommodation offset rate is the most your employer can count towards NMW pay.

Other benefits in kind

As well as accommodation, there is nothing to stop your employer providing you with other ‘benefits in kind’ such as a uniform or meals. However, accommodation is the only benefit in kind whose value can be counted towards NMW pay. 

Your employer cannot offer the value of meals or a uniform (for example) as part of a package that makes up the NMW. If they deduct a sum representing the cost of meals or uniform from your wages, what is left, allowing for any deductions which the NMW rules do allow, must still on average be at least the NMW.

For more info: http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_175108

Pay and Work Rights Helpline

Confidential help and advice on the NMW

0800 917 2368