What is the National Minimum Wage accommodation offset 2026?

The accommodation offset is a specific rule within National Minimum Wage law that applies when employers provide housing to workers — common in hospitality, agriculture, and care sectors.

How it works: Normally, any deduction from a worker's pay reduces their NMW calculation. The accommodation offset is an exception — you can deduct (or charge) up to the offset rate for accommodation without it affecting NMW compliance.

• £11.10 per day
• £77.70 per week (£11.10 × 7)

If you charge more than the offset rate, the excess counts as a pay deduction for NMW purposes — which could push a worker's effective hourly rate below NMW.

Example: A worker earns £12.71/hour (NLW) and works 40 hours/week = £488.40/week. You charge £80/week for accommodation. The excess over the offset (£80 - £74.62 = £5.38) is deducted from their NMW pay. Effective pay: £488.40 - £5.38 = £483.02 / 40 hours = £12.08/hour — below NLW. That's an NMW breach.

• Charging full market rent for accommodation without accounting for the offset cap
• Forgetting the offset applies per day, not per week
• Not updating calculations when the offset rate changes each April

The offset rate increases each April alongside NMW rates. The 2026 rate will be announced in the autumn budget — ComplianceAlert will alert you.

Other deductions: Other deductions (e.g. uniform, tools, transport to work) can also affect NMW calculations. The accommodation offset is the only deduction that has a specific exception in NMW law.