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HMRC internal manual

National Minimum Wage Manual

Deductions and payments from workers: contractual deductions or payments - not for conduct and discipline

Relevant legislation

The legislation that applies to this page is as follows:

* National Minimum Wage Regulations 2015, regulations 9 to 15

See NMWM11060 for contractual deductions or payments which are linked to conduct and discipline.

See NMWM11065 for contractual deductions or payments which are linked to conduct relating to ‘any other event’.

There are other circumstances when an employer might

  • make a deduction or take a payment which is related to the worker’s contract, or
  • suggest that a deduction or payment is ‘allowable’ for national minimum wage purposes simply because it is ‘contractual’ or ‘legal’.

Such deductions or payments should be considered under the normal rules for deductions (NMWM11020) and payments (NMWM11030).

It should be remembered that national minimum wage legislation is not concerned with what an employer is allowed to deduct or take payment for, only the effect that deduction or payment might have on national minimum wage pay.