Working time: salaried hours work; general approach
The legislation that applies to this page is as follows:
For pay reference periods commencing
* on or after 6 April 2015; National Minimum Wage Regulations 2015, regulations 21 to 29 * before 6 April 2015; National Minimum Wage Regulations 1999, regulations 16, 21 & 22
The concept of salaried hours work (NMWM07020) basically allows for annualised hours expressed in a contract to be treated as worked evenly over a year.
This approach is based on identifying;
- the “basic hours” (NMWM08030)
- which fall within a defined period, the “calculation year” (NMWM08040),
- in order to calculate an amount of hours to be treated as worked in each pay reference period (NMWM09010).
Such calculated hours may not necessarily match the actual hours worked in individual pay reference periods such as where the number of working days available varies or where the work is of a seasonal nature.
Special rules apply where workers work more hours than their contracted hours over the course of the year. Such hours are known as excess hours (NMWM08110).
A number of calculations can be required when considering salaried hours work. The worked examples in this manual are displayed to two decimal places but the calculations themselves retain further decimal places which may account for minor rounding issues. For improved accuracy, the decimal places are retained throughout all stages of a calculation, such as for individual pay reference periods, so that any total figures will be based on more decimal places than displayed.
Where it is helpful to show rounded figures in a more representative manner, such as in hours and minutes then such figures are shown alongside the decimal figures, i.e. 37.33 hours (37 hours 20 minutes).
See also NMWM13170.