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HMRC internal manual

National Minimum Wage Manual

Accommodation and accommodation offset: when is accommodation regarded as living accommodation? example 4 - employer provides facilities which are not used by the worker

Example 4

An employer operates an adventure holiday hostel in an isolated part of the country. Several young adults are employed during the summer holidays and are provided with accommodation in a designated staff block. The staff block has a dormitory with a bed for each worker, a communal kitchen and bathroom facilities but the staff choose to pay for meals in the employer’s restaurant because there are no shopping facilities in the surrounding area.


The employer is likely to be providing living accommodation because the facilities include the provision of a bed and bathroom facilities. The availability of cooking facilities and the fact staff are purchasing their own meals will not form part of the consideration of whether living accommodation is being provided. The payments for meals should be considered under the national minimum wage deduction/payment regulations.