Deductions and payments that reduce minimum wage pay
Examples of the deductions by a worker that reduce minimum wage pay.
The following deductions or payments will reduce a worker's National Minimum Wage or National Living Wage pay.
- deductions for your own use or benefit
- deductions or payments from the worker to the employer for expenditure connected with the job - for example tools, uniform, or travel costs - however if you refund the worker for these payments the refund counts as minimum wage pay in the pay reference period in which it is made
- payments by a worker to another person for things connected with the job - for example tools or uniform - however if you refund the worker for these payments the refund counts as minimum wage pay in the pay reference period in which it is made
- certain deductions from pay and payments by the worker for accommodation provided - see
You cannot make any of these deductions if making it would drop the worker's pay below the minimum wage rate.
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