Minimum Wage Offsets

8th February 2023

Effective from 1 January 2023 the offsets under minimum wage have been increased:

The maximum values that may be offset each week where accommodation, or accommodation and food, are provided to an employee, are:

    • £115.00 for accommodation, or £153.28 for accommodation and food, where the employee receives the minimum wage, or
    • £86.25 for accommodation, or £114.97 for accommodation and food, when the employee receives, either the first year or second year trainee rate

Where accommodation or accommodation and food are provided to employees as part of their employment package, maximum values are attributed to those benefits which can be taken into account when calculating whether an employee has been paid the Minimum Wage. Those are known as offsets. No other form of benefit (e.g. utilities bills) may be offset against the Minimum Wage.

"Food" is defined as 3 adequate meals on each day on which the employee is employed. Employers may not offset a proportionate amount of pay for less than 3 meals per day and a charge for food may not be offset unless accommodation is also provided.

"Accommodation" must be available to the employee from midnight to midnight on each day of employment.

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