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.
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Overview
Introduction to this manual on how to calculate the minimum wage.
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Eligibility for the minimum wage
The definition of a 'worker', and the types of work or workers that are eligible for the minimum wage.
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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.
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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.
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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.
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A checklist for employers
A checklist of common causes of minimum wage underpayment with links to relevant sections of the guidance.