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HMRC internal manual

National Minimum Wage Manual

Pay reference periods & elements of pay: payments linked to leaving employment

Relevant legislation

The legislation that applies to this page is as follows:

* National Minimum Wage Regulations 2015, regulation 10

The following do not count as payments under national minimum wage legislation:

  • A payment which refers to a worker’s redundancy (NMWM09290)
  • Any payment by way of a pension
  • Any payment in connection with a worker’s retirement
  • Any payment of compensation for loss of office.

Therefore these payments do not count towards a worker’s total remuneration (NMWM09050) and are excluded from the calculation of national minimum wage pay.

For awards by a court or tribunal, see (NMWM09120).

For the treatment of common payments made by the employer at the end of the employment, see (NMWM09205).

For pay reference period for payments made after the employment ends see (NMWM09030).