Employed students and the accommodation offsetFriday, January 21st, 2011
The national minimum wage (NMW) rules allow employers who provide accommodation for workers to include it, up to a specified limit, as a benefit in kind towards payment of the NMW. The current limit is £4.61 per day, or £32.37 for a full week.
On 18 January, the Department for Business, Innovation and Skills (BIS) published a new consultation document entitled National Minimum Wage: Employed Students and the Accommodation Offset. This consultation seeks input on the extent to which Higher Education Institutions (HEIs) provide accommodation to students and also employ them part-time. If they do, it asks how and in what circumstances HEIs should be excluded from the accommodation offset rules. It also seeks input relating to Further Education Colleges and asks whether they should also be included in any change to the law.
Responses to the options considered in the consultation document should be submitted by 12 April 2011.