National minimum wage amendment in place from January 1

The Government has finalised the National Minimum Wage (Amendment) (No. 2) Regulations 2010, which amend the National Minimum Wage Regulations 1999 and come into force on 1 January 2011.

Schemes that operate at the moment allow part of employees’ pay, which would normally be subject to tax and NIC, to be replaced with expenses payments for travel The amendment means that expenses for travel to a temporary workplace and related subsistence costs can no longer form part of employees’ pay for national minimum wage purposes.

The amendment does not apply in relation to any pay reference period beginning before 1st January 2011.

Temporary workers paid at or near the National Minimum Wage (NMW) can participate in travel and subsistence schemes, operated by some employment businesses and umbrella companies. These are designed to provide tax and NICs savings while complying with NMW rules.

Personnel Today http://tinyurl.com/3azjdzu

About elaineonyc

HR generalist who is passionate about the benefits of good HR practice. Experienced in delivering strategic and operational HR initiatives to clients in both public and private sectors. Specialises in working with SMEs.
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1 Response to National minimum wage amendment in place from January 1

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