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Can I receive childcare vouchers through a salary sacrifice scheme even though I am currently only earning the National Minimum Wage?
The National Minimum Wage (NMW) provides a legally binding minimum hourly rate of pay to workers aged 18 or over – with few exceptions. A salary sacrifice scheme must not reduce an individual's taxable salary below the NMW.
So, if an individual is currently earning the NMW she or he is not entitled to receive childcare vouchers within a salary sacrifice scheme unless the employer offers them, free of tax and National Insurance contributions, over and above the individual's earnings.