The National Minimum Wage (Amendment) (No. 2) Regulations 2020
The purpose of these regulations is to reduce burdens on businesses employing salaried staff (those paid an annual salary in equal instalments) from complying with the NMW rules, without removing protections or benefits for workers.
The regulations primarily make a number of technical amendments to the National Minimum Wage. The notable changes are:
- Removal of “salary premiums” such as a London weighting, unsociable hours pay or bank holiday pay from the calculation of basic hours or annual salary pay. As detailed in regulation 5
- Permitting employers, by written notice, to change a calculation year for salaried workers in specified circumstances.
Other technical reforms include introducing a requirement that an employer make, or intend to make, a separate payment to cover goods and services that a worker is obliged to purchase from the employer in order to avoid it being a reduction to basic pay. This takes effect for the first pay reference period after 6th April 2020.