• The consultation proposes changes to the National Minimum Wage (NMW) Regulations which relate specifically to salaried hours work.

• There are three areas to the consultation: Salaried work, Salary Sacrifice Schemes, General Information.

• The consultation asks whether other pay cycles should be included in salaried work: fortnightly, four weekly or any equal period of one month or less. Would the additional payment cycles improve compliance and/or cause any detriment to workers?

• Government is keen to know if employers are avoiding salary sacrifice schemes because of NMW risk.

Aspire Comment

Government is aware of issues in the current NMW Regulations which make the NMW calculation for salaried workers problematical.  They are looking at ways to avoid this and also considering if difficulties in ensuring NMW compliance are restricting the use of salary sacrifice schemes.

To read the full consultation, click here.

Minden U.K. Limited use Aspire Business Partnership LLP. This firm provide Minden U.K. Ltd with practical and commercially sound advice in relation to all aspects of compliance, business strategy and conflict resolution. Original article can be found on Aspire’s website:

https://www.aspirepartnership.co.uk/News/3238/consultation-salaried-workers-and-salary-sacrifice-schemes