Government papers: Salaried workers and salary sacrifice schemes: changing the National Minimum Wage rules

A consultation into the National Minimum Wage (NMW) rules regarding salaried workers and the operation of salary sacrifice schemes has been launched by the Department for Business, Energy and Industrial Strategy.

The consultation seeks views on proposed changes to the NMW Regulations which relate specifically to salaried hours work and where employers feel NMW rules unfairly penalise them without generating any benefit or protection for workers.

In addition, the government would like views on whether, and if so how, it 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 when a worker agrees with an employer a lower rate of gross pay in exchange for goods or services. NMW 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.

This consultation closes at 11:45pm on 1 March 2019.