As of 1st October 2008, the minimum wage for employees aged 22 and over is £5.73 per hour Whilst taking childcare vouchers, your hourly rate must be re-calculated to ensure your employer is still paying you on/above National Minimum Wage.
Therefore your employer pays your gross salary, the Childcare Voucher is deducted. On the remaining, reduced cash salary you then pay Income Tax, National Insurance and the Minimum Wage is calculated on your cash salary.
If your salary is below minimum wage, you can not take Childcare Vouchers. However, you may be able to take a reduced amount in Childcare Vouchers.
However, your partner may also eligible to take Childcare Vouchers through their employer. Please contact one of our Customer Service Representatives on 08000 430 860.
You may be able to gain financial support through the Tax Credits system from Revenue & Customs. For more information, please contact 0845 300 3900, or visit their website www.hmrc.gov.uk.