TranslateNational Minimum Wage Information
National Living Wage rate update: 08-FEB-24
***Net Deduction cars are currently unavailable through Fleet Solutions, this is due to recent communications (HMRC Webinar) provided by our payroll provider that HMRC may require the Employer to use the National living wage rates against a NET car application. We are awaiting confirmation back from Fleet Solutions legal team with no timescale of a response.
As soon as we have a response and if confirmed that the Trust is NOT required to use the NLW rates then we will allow NET applications and update the hub accordingly.
Following on from the last update regarding the National living wage (NLW) rate buffers.
The latest forecast coincides with the recent Autumn Budget and upcoming Spring Budget.
We will continue to use projections for predicting future rate increases, we understand that this is just a forecast but we have a legal obligation to ensure that no staff falls below the proposed new minimum rates on its implementation.
From Tuesday 28th November the Trust will use a revised rate of £11.44 for 12 month applications and £12.19 for 18/24 month applications. This is applicable for Home Electronics and Bike applications.
From Thursday 8th February 2024 the Trust will use the following rates for Fleet Solutions (Car) - £12.94 for 24 month and £13.69 for 36 month applications. This is because cars have an order lead-time (Delivery date)
Please see below for some examples and a full list of rates for each scheme.
Salary Sacrifice Scheme NLW rates effective from 28th Nov 2023, please see list below:
Home Electronics - 12 month applications - £11.44 per hour/24 month applications - £12.19 per hour.
Full time Threshold £22,369.28 (Over 12 Month) and £23,835.80 (Over 24 Month); An employee cannot FALL below these amounts when applying through Home Electronics. *Please note the Threshold is calculated pro -rata. Ask the Salary Sacrifice team for further advice.
Fleet Solutions - 24 month applications - £12.94 per hour/36 month applications - £13.69 per hour.
Full time Threshold £25,302.31 (Over 24 Month) and £26,768.83 (Over 36 Month); An employee cannot FALL below these amounts when applying through Fleet Solutions. *Please note the Threshold is calculated pro-rata. Ask the Salary Sacrifice team for further advice.
If an employee has a NET car, please be aware the Trust will use the monthly/yearly 'Net' deduction against any future Salary Sacrifice applications and this could affect future applications.
Cycle to work - 12 month applications - £11.44 per hour / 18 month applications - £12.19 per hour.
Mersey travel pass - 12 month applications - £11.44 per hour - Full time Threshold £22,369.28
Additional annual leave - Any application in the current fiscal year April 24 to November 24 - We use the current NLW rate - £11.44 - Full time Threshold £22,369.28
As part of the Salary Sacrifice schemes’ terms and conditions of operation, set by HMRC, the Trust uses the NLW level as a starting point when setting the ‘Minimum Entry Level’ for new Salary Sacrifice applications.
Our ‘Minimum Entry Level’ has been set slightly higher than the NLW in anticipation of any future increase in NLW during the term of the item, ensuring the Trust is compliant with the HMRC regulations. It also avoids any ‘knock on’ effect to participating staff’s tax coding or their ability to continue with the item as a Salary Sacrifice.
We will email any employee who have taken out a Salary Sacrifice item and is affected by the change in the National Living Wage in line for April 2024. We will explain this in detail and provide further guidance what happens next. ** Please note if you fall below the NLW whilst in a salary sacrifice agreement we will instruct payroll to switch affecting contracts to a NET deduction.
If you have any queries relating to this memo, please contact the Salary Sacrifice Team by email: smartsalary@liverpoolFT.nhs.uk or contact HMRC direct for tax queries.
