New NMW applied from October 1. Do I need to pay myself more salary?

sy8111

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#1

New NMW applied from October 1. Do I need to pay myself more salary?

3 October 2011, 23:21

Hi,

New NMW is applied from October 1. Do I need to pay myself more salary in line with new NMW value? Currently I am paying myself (director) 589 monthly salary.

Thanks in advance.
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Greg@CapitalCity

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#2

4 October 2011, 01:36

Hi,

No need to adjust your monthly salary payments so long as you are a director of your company, and not considered an employee. In your capacity as a Director you can pay yourself whatever salary you like - as an employee your company would be bound by the NMW rules.

What makes you an employee?? The presence of an employment contract or workers contract. So long as none exists, your duties as a Director fall outside of NMW.

See Who is not entitled to the National Minimum Wage : Directgov - Employment

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