National Minimum Wage and SSAC

When checking for the national minimum wage

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Should the minimum hourly rate match the national minimum before or after salary sacrifice?

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By tom123
19th Feb 2024 12:47

You cannot have a salary sacrifice where the employee receives less gross pay than the minimum wage,

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By FactChecker
19th Feb 2024 13:23

To answer OP's question ... the NMW check will be performed *after* any purported Salary Sacrifice (because SalSac is a contractual reduction in salary, not a deduction from it - so employee now has a new, lower salary).

I say 'purported' because, as Tom correctly says, if the check reveals that the Salary Sacrifice has resulted in a breach of NMW then the agreement will be void (although arguably the employee would still be entitled to whatever 'benefit' had been part of the intended quid pro quo).

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