The Government has updated the section ‘What to include when calculating wages’ to give more information about non-monetary benefits and employer pension contributions under salary sacrifice schemes.
You cannot include the following when calculating wages:
payments made at the discretion of the employer or a client - where the employer or client was under no contractual obligation to pay, including:
any tips, including those distributed through troncs
discretionary commission payments
non-monetary benefits like benefits in kind (such as a company car), including benefits received in exchange for giving up an amount of pay under a salary sacrifice scheme
employer pension contributions, including pension contributions received in exchange for giving up an amount of pay under a salary sacrifice scheme (you can still include pension contributions that the employee makes from their wages, such as through a Net Pay Arrangement pension scheme)
amounts of pay given up under a salary sacrifice scheme