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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
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Pay Reference Periods & Elements of Pay: Statutory payments - sick pay, maternity pay, paternity pay, adoption pay

A payment made by the employer to the worker by way of statutory payment for sick pay, maternity pay, paternity pay, additional paternity pay, and adoption pay, is initially included in a worker’s total remuneration (NMWM09050) for national minimum wage purposes.

Where these statutory payments are in respect of a specific period of absence from work, for national minimum wage purposes it will be necessary to reduce the amount of that statutory payment from the calculation of national minimum wage pay (NMWM09080).

Where a worker attends work during their period of absence, for example a keep in touch arrangement during maternity or additional paternity leave, the time will count as time worked for national minimum wage purposes. If a worker is not paid for this time, an underpayment of national minimum wage pay could arise for this pay reference period.