Accommodation Offset Rate

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Circular No. NP/045/15/MC

19th March 2015

TO: ALL BRANCHES, REGIONAL ORGANISERS, REGIONAL COUNCILS, & COUNCIL OF EXECUTIVES.

Dear Colleagues,

Accommodation Offset Rate

The Government has accepted the Low Pay Commission’s recommendation for an increase to the Accommodation Offset.

    Current rate    Oct 2015    % increase
Accommodation Offset    £5.08    £5.35    5.3

The accommodation offset is the only benefit-in-kind which can count towards payment of the minimum wage. It provides a mechanism to enable employers to offset the cost of providing accommodation for workers against the NMW up to a maximum daily limit

The new rate is £5.35 per day or £37.45 per week. If an employer charges more than this, the difference is taken off the member’s pay which counts for the minimum wage.

Yours sincerely,

 

Mick Cash
General Secretary