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HMRC internal manual

National Minimum Wage Manual

Working time: salaried hours work; considering excess 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



When considering whether a worker has worked excess hours over and above their basic hours it is necessary to consider for each pay reference period the actual hours worked and treated as worked. Such hours are those which are;

  1. worked in the pay reference period and fall within the basic hours as determined at the start of the calculation year. For example, the actual hours worked in the pay reference period.
  2. included within the basic hours but where the worker was absent. For example, the hours where a worker was absent due to holiday (NMWM08070).
  3. worked in the pay reference period outside of the basic hours where no additional payment was made. For example, unpaid work before or after official working time or unpaid overtime. Please note, hours outside of the basic hours where payment is made, such as overtime, is not included in any excess hours consideration but such time is added to the time treated as worked in the pay reference period.
  4. treated as worked for national minimum wage purposes. For example, time spent waiting (NMWM08160), on call (NMWM08170), travelling (NMWM08200) and training (NMWM08190).

To determine whether and when excess hours have been worked it is necessary to compare the cumulative actual hours worked (1 and 3 above) and treated as worked (2 and 4 above) in the calculation year against the basic hours.