10 December 2024
The advisory team has received an increased number of queries in relation to salary sacrifice arrangements and its impact on National Minimum Wage (NMW).
It’s really important to note that even if an employee wishes to enter into a salary sacrifice arrangement, they are unable to if the amount foregone in salary reduces their pay to under NMW.
Please see the below guidance pages for further information:
- NMWM09300 - Pay reference periods and elements of pay: salary sacrifice - HMRC internal manual - GOV.UK
- Salary sacrifice for employers - GOV.UK
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