Tips and the national minimum wage
With effect from 1 October 2009 tips, service charges, gratuities and cover charges paid to a worker through the employer’s payroll do not count towards payment of the national minimum wage.
Just to confirm, tips, etc., when given directly to a worker by a customer, and tronc payments made directly to a worker by a tronc master, continue to be excluded from the national minimum wage.
Guidance on what counts as pay for national minimum wage purposes can be found at www.lexisurl.com/blnmw.
Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552.
Date: 26th November, 2009
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