NMWM01042 - History of National Minimum Wage and overview of legislation: the National Minimum Wage (Amendment) (No. 2) Regulations 2020

Relevant legislation

The legislation that applies to this page is as follows:

  • National Minimum Wage (Amendment) (No. 2) Regulations 2020

National Minimum Wage (Amendment) (No. 2) Regulations 2020

Between December 2018 and March 2019 a consultation with a wide range of stakeholders took place. During this consultation, evidence was gathered on elements of the National Minimum Wage rules which could be improved whilst maintaining worker protections. In response to the consultation the government decided to make substantive changes to the National Minimum Wage rules regarding salaried hours work, salary sacrifice and pay deductions.

The legislative changes to the 2015 Regulations are to;

  • Allow salaried hours workers to be paid in additional equal instalments, such as two-weekly and four-weekly
  • Provide employers with the discretion to nominate a chosen day upon which the calculation year for their workers will start
  • Allow employers to make premium payments to their salaried hours workers in respect of the basic hours and allowing salaried hours workers’ contracts to specify these premium arrangements. Such payments will not form part of the worker’s pay for National Minimum Wage purposes

The above changes came into force 6 April 2020. However, the National Minimum Wage (Amendment) (No. 2) Regulations 2020 include transitional arrangements (NMWM08042), which provide special rules for those workers engaged by an employer prior to 6 April 2020 who change the type of work being performed as a result of this amendment. A worker in this position is called a “re-categorised worker”. Providing certain conditions are met, an employer is able to select a “nominated day” for the worker to commence performing salaried hours work and calculation year to start.

If an employer does not select a “nominated day” for a “re-categorised worker” before 6 April 2022, then the starting date for the worker to be performing salaried hours work will be the first day of the calculation year which falls after 6 April 2022 (NMWM08040).