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.
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.