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.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.

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