Why am I seeing this message?
You’re seeing this message because your benefit selection may reduce your taxable salary below the National Minimum Wage (NMW) or National Living Wage (NLW).
When confirming your selections, you may see a message like:
“Your benefit selection may reduce your taxable salary below the National Living Wage. Based on your contracted hours of 37.5 per week, your minimum wage is calculated as [COST] per annum. Please ensure your taxable salary will not drop below your minimum wage before proceeding.”
This warning is based on your current salary, contracted hours, and the cost of any salary sacrifice benefits you have selected.
What do I need to do?
If you need to take action, you should review and amend your benefit selections:
Option 1: Proceed with your selections
As this is a warning only, you can still choose to proceed and confirm your selections. However, please be aware that doing so may reduce your taxable salary below the National Minimum Wage (NMW) or National Living Wage (NLW).
This could have financial implications, including potential tax impacts or affecting your eligibility for certain benefits. We recommend reviewing your selections carefully before proceeding to ensure they are suitable for your circumstances.
Option 2: Amend your selections
- Go back to ‘My Benefits’
- Reduce or adjust your salary sacrifice benefit selections
- Review and confirm
Option 3: Switch to Net Pay (if available)
- If the benefit offers a Net Pay option, you can select this instead
- Net Pay deductions are taken after tax and National Insurance, so they do not impact National Minimum Wage calculations
Option 4: Remove your selection (if available)
- You may be able to remove or undo your selection
- This option will appear on the benefit page below the ‘Update Benefit’ button, if available
What if I think this is incorrect?
If you believe your salary should cover the cost of the benefit, or you’re unable to make changes:
- Please contact your HR or Payroll team
- They can review your details and investigate further
Helpful tip
Salary sacrifice benefits reduce your taxable salary, so it’s important to ensure your selections keep you above the National Minimum Wage threshold.