Deduction guide
Deductions that can reduce minimum wage pay
Some deductions and payments by a worker can reduce the pay counted for National Minimum Wage purposes, even where the headline hourly rate looks right.
What to watch for
Minimum wage checks can be affected by money taken from pay, payments the worker has to make because of the job, and some accommodation charges. The label on the payslip is not always enough to decide whether the amount matters.
This is one reason workers should check effective pay after required costs, not only the gross hourly rate shown on a job advert or contract.
Common examples to review
- Uniforms, tools, or required clothing paid for by the worker
- Accommodation charges above the offset
- Deductions linked to the employer's use or benefit
- Payments made outside payroll but required by the job
Check the full period
Enter the deduction or work cost in the same weekly or monthly period as the pay and hours you are checking.