Accommodation Offset

Following approvals at ExCo and Legislative Assembly, a number of changes to how the Minimum Wage is calculated are coming into effect from the 1^st January 2026. This follows an extended period of consultation with businesses, key stakeholders and the wider public.

This will coincide with an increase in the rate of the minimum wage to £9.66, also effective from 1^st January 2026.

The accommodation offset forms part of the Calculation of Amount Paid Regulations (Amended 2025) and is in place to ensure that employees receive a minimum proportion of their pay as cash. It is applied when an employee lives in accommodation provided by an employer, or another connected company on behalf of the employer.

• Where accommodation is provided for free, businesses are able to count some of the cost of providing that accommodation as pay, at a rate of 50% of the value to a limit of £193.20 per week.
• Where the employee pays for their accommodation businesses are allowed to count 70% of the amount paid to a limit of £193.20 when calculating the minimum wage*.

The below calculator has been designed to support businesses and individuals ahead of the 1^st January 2026:

Please note values in the calculator will be correct from the introduction of the new, higher rate of the minimum wage on 1^st January 2026.

An FAQ sheet with examples and a short presentation outlining the changes has also been produced and can be found below:

Guides are also being issued by the Falkland Islands Tax Office and are available below. For further information on the minimum wage rate you can visit: https://falklands.gov.fk/taxation/employers/minimum-wage 

Should you have any further questions, please contact the FIG Senior Policy Advisor at [email protected]. A number of information sessions will be held over the coming weeks, details will be advertised through the press.

For queries about the minimum wage rate and taxation, please contact the Falkland Islands Government Taxation Office.

* An employer can deduct or charge more than this amount for accommodation, but the excess will not count towards minimum wage pay.