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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
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Working time: salaried hours work; examples of using basic hours to identify time treated as worked

General

The hours to be treated as worked in each pay reference period (NMWM09010) for a worker performing salaried hours work is derived from a calculation using the worker’s basic hours and pay reference period (NMWM08030). This calculation enables annualised hours in a calculation year (NMWM08040) to be treated as being worked evenly throughout a year.

Example 1, weekly paid

A weekly paid worker has 2088 basic hours in the calculation year 1 January 2014 to 31 December 2014.

To identify the time treated as worked for each pay reference period divide the basic hours by 52:

  • 2088 ÷ 52 = 40.15 hours (40 hours 9 minutes)

As long as the worker does not exceed the basic hours in the calculation year, the employer must pay at least national minimum wage for 40.15 hours per week regardless of the time the worker actually spends working.

Example 2, monthly paid

A monthly paid worker has 2080 basic hours in the calculation year 1 January 2014 to 31 December 2014.

To identify the time treated as worked for each pay reference period divide the basic hours by 12:

  • 2080 ÷ 12 = 173.33 hours (173 hours 20 minutes)

As long as the worker does not exceed the basic hours in the calculation year, the employer must pay at least national minimum wage for 173.33 hours per month regardless of the time the worker actually spends working.

Expanded form of these examples (Excel 33kb).