Calculating the minimum wage

• From: Department for Business, Energy & Industrial Strategy
• Published: 1 March 2021
• Updated: 26 July 2022, see all updates

Guidance on calculating the minimum wage, to help employers meet National Minimum Wage legislation.

This guidance provides practical advice and examples to explain:

• what counts and does not count as pay and working hours for minimum wage purposes
• eligibility for the minimum wage
• how to calculate the minimum wage
• how we will enforce the minimum wage

It also applies to workers entitled to the National Living Wage.

This manual replaces an earlier version of the guidance.

• Overview

  Introduction to this manual on how to calculate the minimum wage.

• Index to the manual

  Index provided to help users find the key areas of the manual.

• Eligibility for the minimum wage

  The definition of a 'worker', and the types of work or workers that are eligible for the minimum wage.

• Calculating the minimum wage

  How to calculate the average hourly rate, and the number of hours worked over a specific period so that you pay the correct wage; includes example calculations.

• Working hours for which the minimum wage must be paid

  An explanation of the types of work and the working hours for which you must pay the minimum wage.

• Enforcing the minimum wage

  The minimum wage can be enforced by HM Revenue and Customs (HMRC) compliance officers or by a worker making a claim in an employment tribunal or court.

• A checklist for employers

  A checklist of common causes of minimum wage underpayment with links to relevant sections of the guidance.