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Where your employer provides accommodation, the value
of the accommodation can be offset against pay. However,
the maximum amount that can be counted against your pay
is L3.90 for each day that accommodation is provided. The
limit is likely to be increased in October 2006.


If you are paid at exactly the national minimum rate and your
employer then deducts more than L3.90 for each day the
accommodation is provided; this means you will not be
receiving national minimum wage pay.

If you are paid more than the national minimum wage and your
employer makes a deduction for accommodation, this must not
take your pay below the national minimum wage by more than
L3.90 for each day accommodation is provided.

For example

If a worker is paid at the main minimum wage rate of L5.05
an hour for a 45 hour week and rent of L45 a week
deducted for the accommodation which is available seven
days a week (note other deductions not included)

Weekly pay L5.05 x 45 = L227.25
Minus rent charged: L45.00

Total pay received L182.25

To see whether the minimum wage has been paid:

Start with weekly pay: L227.25
Identify the applicable offset: L3.90 x 7 = L27.30
Subtract the offset from the rent charged: L45 - L27.30 = L17.70



Subtract this excess above the offset from total pay
(L227.25- L17.70) = L209.55
Total Pay for national minimum wage = L209.55
Divide national minimum wage pay by hours L209.55/45 =
L4.66 per hour. The worker is therefore being under paid by
L0.39 pence an hour.

Another example

If a worker is paid L6.00 an hour for a 45 hour week and
rent of L75 a week deducted for the accommodation which
is available seven days a week (note other deductions not
included)

Weekly pay L6.00 x 45 = L270
Minus rent charged: L75


Total pay received L195

To see whether the minimum wage has been paid:
Start with weekly pay: L270.00
Identify the applicable offset: L3.90 x 7 = L27.30
Subtract the offset from the rent charged: L75 -L27.30 =
L47.70
Subtract this offset from total pay (L270 -L47.70) = L222.30

Total Pay for national minimum wage = L222.30
Divide national minimum wage pay by hours L222.30/45 =
L4.94 per hour. The worker despite being paid well above
the minimum wage is therefore being underpaid by L0.11
pence an hour.