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HMRC internal manual

National Minimum Wage Manual

Types of work: salaried hours work conditions - other payments and unpaid hours

Payments which are not payments for the basic annual hours

Some workers are contractually entitled to receive payment for:

  • Hours which are not part of their basic annual hours or
  • Work done outside their basic annual hours or
  • Allowances which are not specifically for the work done in the basic annual hours.

These payments alone will not prevent the worker being treated as performing salaried hours work for national minimum wage purposes (provided all the other criteria for salaried hours work are met). Examples of these types of payment are:

  • A worker is entitled to receive at least the national minimum wage for hours worked in excess of his basic annual hours under national minimum wage legislation;
  • A worker who works his basic annual hours from Monday to Friday is entitled to be paid for overtime worked at weekends;
  • A worker may be entitled to receive an attendance allowance. This payment is not for work performed during the basic annual hours.



A worker is contracted to work 1440 hours a year for which she will receive £11700 paid in equal weekly instalments of £225.00. She does work some overtime and is paid this at a premium rate.  She is also sometimes paid a set £30 for a sleeping shift. (It has been established that she is not working when on sleeping shifts)

The annual hours are ascertainable because the employer and worker have a contract agreeing a number of basic hours and ‘salary’ for a year. 

The worker is paid in equal weekly instalments.  Overtime is not part of her basic hours.  Sleeping shift payments are not paid for hours worked as part of the basic hours.

Providing she meets the criteria for salaried hours work, the overtime payments and sleeping shift payments will not prevent the work from being salaried hours work.