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HMRC internal manual

National Minimum Wage Manual

Working time: salaried hours work; considering the actual hours worked in the calculation year

Relevant legislation

The legislation that applies to this page is as follows:

* National Minimum Wage Regulations 2015, regulation 26



The concept of salaried hours work allows for annualised hours expressed in a contract to be treated as worked evenly throughout a calculation year (NMWM08040). Where a worker never works more than their basic hours during the course of the calculation year the employer will meet their national minimum wage obligations as long as they pay at least national minimum wage for the hours treated as worked in each pay reference period (NMWM09010).

However, where a worker works more than their basic hours in a calculation year, the time treated as worked has to be adjusted from the point the basic hours have been exceeded. This means that the excess hours have to be calculated and paid in addition to the basic hours.

To determine whether and when excess hours have been worked it is necessary to compare the cumulative actual hours worked and treated as worked in the calculation year against the basic hours, see NMWM08110.