Calculating the minimum wage

  1. Contents

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.

  • 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.