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How the National Minimum Wage is calculated
[ch 4: pages 95-96]There are different methods of calculating the hourly rate of pay for the purposes of the NMW (regulation 17, NMWR 15), depending whether a worker is paid:
• a salary;
• according to hours worked (time work);
• according to output (piece work); or
• unmeasured work. This is work that is neither salaried nor output work, but where there are no specified hours and the worker is required to work when needed, or when work is available.
The period of time for which the NMW is calculated is called the pay reference period. This is either a month or any shorter period used to calculate the worker’s pay, such as weekly.
Information about calculating the NMW is available at: https://www.gov.uk/national-minimum-wage/what-is-the-minimum-wage.
Advice on national minimum wage rights is available from the Acas helpline tel: 0300 123 1100 which has replaced the Pay and Work Rights helpline (www.acas.org.uk/index.aspx?articleid=1902).
The TUC has a minimum wage calculator on its WorkSMART website (https://worksmart.org.uk/tools/minimum-wage-calculator).