The national minimum wage has increased from this month October 2016 as follows:
25 and over £7.20 per hour
21 to 24 year olds increased by 3.7% to £6.95 per hour
18-20 year olds increased by 4.7% to £5.55 per hour
16-17 year olds will increase to £4.00 per hour
Apprentice rate will increase to £3.40 per hour
Accommodation provided by an employer can be taken into account when calculating the minimum wage.
The rate for the accommodation offset will increase to £42.00 per week or £6.00 per day.
If an employer charges more than this, the difference is taken off the worker’s pay which counts for the minimum wage.
This means the higher the accommodation charge, the lower a worker’s pay when calculating minimum wage.
If the accommodation charge is at or below the offset rate, it doesn’t have an effect on the worker’s pay.
If the accommodation is free, the offset rate is added to the worker’s pay.
No other kind of benefit (eg food, a car, childcare vouchers) counts towards the minimum wage.
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.
Pay and Work Rights Helpline
Confidential help and advice on the NMW
0800 917 2368