Under national minimum wage legislation, the provision of accommodation by the employer is the only benefit in kind that can count towards a worker’s national minimum wage pay.

In response to findings by the Low Pay Commission and in the light of the Court of Appeal’s decision in the recent case of Leisure Employment Services Ltd. v HM Revenue and Customs, the Department of Trade and Industry has issued new guidance on the use of the national minimum wage accommodation offset.

The guidance includes a list of circumstances in which the employer will be considered to be providing accommodation and examples of different wage calculations depending on a variety of scenarios. It also explains how to treat absences from work and contains a section on Frequently Asked Questions. It can be downloaded at http://www.dti.gov.uk/files/file38769.pdf.

Contact Maung Aye on 020 7712 1779 or email [email protected] if you would like advice to ensure your pay arrangements do not breach the national minimum wage legislation.