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Posted Fri, 11 Oct 2024 11:24:50 GMT by Denise Toner
Hi, if a company were to allow team members to buy additional holiday (e.g. max 3 days) and the cost of the holiday was recovered from the team member over a maximum of 2 or 3 payroll periods, would that impact on the national minimum wage calculation?
Posted Thu, 24 Oct 2024 12:01:13 GMT by HMRC Admin 20 Response
Hi MrsH,
Any deduction from pay, outside of a very specific list of exceptions, is likely to reduce a workers minimum wage pay.
Salary sacrifice will always reduce a worker's minimum wage pay.
The worker is in essence giving up that portion of their pay in exchange for something else, so it cannot be included in any minimum wage calculations.
Any determination would depend on the arrangements in place. 
For more information, please refer to: Calculating the minimum wage Salary sacrifice
Thank you.
 

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