Pay reference periods & elements of pay: what is a pay reference period?
The legislation that applies to this page is as follows:
* National Minimum Wage Act 1998, section 1(4)
For pay reference periods commencing
* on or after 6 April 2015; National Minimum Wage Regulations 2015, regulation 6 * before 6 April 2015; National Minimum Wage Regulations 1999, regulation 10
The pay reference period is usually the period for which a worker is paid (NMWM09020). It is used as the basis for calculating whether the national minimum wage has been paid.
A worker does not need to be paid at or above their national minimum wage rate for each individual hour worked in the pay reference period. However, they must be paid at or above the national minimum wage on average for all the hours worked in the pay reference period.