National Minimum Wage and travelling

Opinion

National Minimum Wage and travelling

New regulations from 1 January 2011 are going to affect how employers pay those who are close to the National Minimum Wage.

A good number of temporary workers are paid at or just above the National Minimum Wage and of these, a number receive expenses under travel and subsistence rules to make low payments up to the NMW. This form of payment is exempt from National Insurance for both the employer and employee.

As a result of concerns last year that payments made this way stopped the low paid from accessing social security benefits, the National Minimum Wage (Amendment)(No.2) Regulations 2010 was introduced to ensure that these forms of payment no longer count as part of an employee's pay.

This was first published in January 2011

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