National Minimum Wage and Living Wage: accommodation
What counts as accommodation charges
Include these costs as part of your overall accommodation charges:
- rent
- charges for things like gas, electricity, furniture
- laundry
Working out if the employer provides the accommodation
The employer is providing accommodation if any of these apply:
- the accommodation comes with the job
- the employer (or a connected person or company) owns or rents the property the worker lives in, even if there’s no direct link between the job and the accommodation
- the employer (or an owner, business partner, shareholder or director) gets a payment or benefit from the worker’s landlord or a member of the landlord’s family
Accommodation costs count towards the National Minimum Wage or National Living Wage, even if the worker does not have to use the accommodation to do the job. If the accommodation is optional, it only counts as a cost if the worker uses it.
Local housing authority and social housing providers
If someone working for a local housing authority or social housing provider gets accommodation from their work, this does not automatically count towards the National Minimum Wage or National Living Wage.
It only counts if the accommodation is linked to the employment. For example, a care warden who has to live on site has their accommodation linked to their job.
Higher or further education institutions
Accommodation is not counted when working out the National Minimum Wage or National Living Wage if it’s provided by a higher or further education institution to a worker who’s enrolled on a full-time course with the institution.
Help and advice
Call the Acas helpline if you have any questions about workers’ rights and the minimum wage.