Got declined for a cycle to work scheme as it will take me below minimum wage?
03 April 2009, 01:21 PM
#1
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Got declined for a cycle to work scheme as it will take me below minimum wage?
I only work part time as I'm a uni student, but the salary deductions will mean I earn less than minimum wage. I do overtime, but of course that's not contract.
Are there any other ways I can do a cycle to work scheme, a third party scheme rather than through my employer?
Are there any other ways I can do a cycle to work scheme, a third party scheme rather than through my employer?
03 April 2009, 01:33 PM
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Who declined you - some retard in HR ?
surely deductions from your pay have no effect on what is considered your hourly pay rate !!
Speak to someone in the company who knows their **** from their elbow - it may take some doing but most HR departments have a least one person with half a brain
surely deductions from your pay have no effect on what is considered your hourly pay rate !!
Speak to someone in the company who knows their **** from their elbow - it may take some doing but most HR departments have a least one person with half a brain
03 April 2009, 01:38 PM
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Take it all back - looks like the retards are in Government - Again 
!!!!
Salary sacrifice and the National Minimum Wage
A salary sacrifice cannot reduce your cash pay below the National Minimum Wage.
The National Minimum Wage provides a legally binding minimum hourly rate of pay to workers aged 18 years or over - with few exceptions. There are different levels of the National Minimum Wage:
Description
Amount
A rate for workers aged 22 years and above
£5.35*1 per hour rising to £5.52*2 per hour
A development rate for workers aged 18 - 21 years inclusive, and,
For workers aged 22 years and above starting a new job with a new employer and doing accredited training*3
£4.45*1 per hour rising to £4.60*2 per hour
A development rate for workers aged 16 - 17 years inclusive*4
£3.30*1 per hour rising to £3.40*2 per hour
Notes
*1 Rates in force from 1 October 2006
*2 Rates in force from 1 October 2007
*3 accredited training means a course approved by the UK Government to obtain a vocational qualification
*4 16 and 17 year old apprentices are exempted from the young workers rate
Although workers aged 22 years and over can be paid the development rate in the circumstances described above, it can only be paid for the first six months after which they must be paid at least the National Minimum Wage rate.
The National Minimum Wage applies to new and existing workers and takes no account of how the worker is paid, be it hourly, daily, weekly, or by session.
Source http://www.hmrc.gov.uk/specialist/salary_sacrifice.pdf
!!!!Salary sacrifice and the National Minimum Wage
A salary sacrifice cannot reduce your cash pay below the National Minimum Wage.
The National Minimum Wage provides a legally binding minimum hourly rate of pay to workers aged 18 years or over - with few exceptions. There are different levels of the National Minimum Wage:
Description
Amount
A rate for workers aged 22 years and above
£5.35*1 per hour rising to £5.52*2 per hour
A development rate for workers aged 18 - 21 years inclusive, and,
For workers aged 22 years and above starting a new job with a new employer and doing accredited training*3
£4.45*1 per hour rising to £4.60*2 per hour
A development rate for workers aged 16 - 17 years inclusive*4
£3.30*1 per hour rising to £3.40*2 per hour
Notes
*1 Rates in force from 1 October 2006
*2 Rates in force from 1 October 2007
*3 accredited training means a course approved by the UK Government to obtain a vocational qualification
*4 16 and 17 year old apprentices are exempted from the young workers rate
Although workers aged 22 years and over can be paid the development rate in the circumstances described above, it can only be paid for the first six months after which they must be paid at least the National Minimum Wage rate.
The National Minimum Wage applies to new and existing workers and takes no account of how the worker is paid, be it hourly, daily, weekly, or by session.
Source http://www.hmrc.gov.uk/specialist/salary_sacrifice.pdf
Last edited by jasey; 03 April 2009 at 01:40 PM.
03 April 2009, 02:07 PM
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.Long and short of it is you must be earning the minimum wage (or just above it) just now - In order to get a bike on the cycle to work scheme you have to sacrifice some of your wage in order to get it.
But this will take your wage to under the minimum wage so you aren't allowed to do it.
Yet another grand scheme from this government that put the low paid at a disadvantage
.Maybe you should write a letter to Jacqui Smith to claim a bike on her expenses and give it to you and you can pay her back
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03 April 2009, 02:46 PM
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So just to clarify, I am not eligible for the scheme as I Am on minimum wage and am not aloud to sacrifice £20.38 a month gross, and 13.50 net (ish 
) becauce it lowers my hourly rate by a few pence, so instead I must continue to drive my gas guzzling vehicle which has a high carbon output, yet if I was wealthy and could afford to by the bike outright I would get a better deal than the poor man.
Could anyone justify how any of this makes sense. I want to do the typical British thing and write a strongly worded letter but do not know who to write it to can anyone shed light on this?
) becauce it lowers my hourly rate by a few pence, so instead I must continue to drive my gas guzzling vehicle which has a high carbon output, yet if I was wealthy and could afford to by the bike outright I would get a better deal than the poor man. Could anyone justify how any of this makes sense. I want to do the typical British thing and write a strongly worded letter but do not know who to write it to
can anyone shed light on this?
03 April 2009, 04:17 PM
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Who declined you - some retard in HR ?
surely deductions from your pay have no effect on what is considered your hourly pay rate !!
Speak to someone in the company who knows their **** from their elbow - it may take some doing but most HR departments have a least one person with half a brain
surely deductions from your pay have no effect on what is considered your hourly pay rate !!
Speak to someone in the company who knows their **** from their elbow - it may take some doing but most HR departments have a least one person with half a brain
Pension contributions always used to be restricted to 15% of earnings until A-Day in 2006, then they removed the cap and you can pay up to 100% of your earnings now (subject to the Annual Allowance before anyone gets smart) as contributions are volunatary. The cycle-to-work scheme works in the same way.
03 April 2009, 04:25 PM
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hmm. It's just frustrating since summer is coming and the sun is starting to shine. Gagging to cycle up the forests near me but my old bikes nackered lol
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