LRD guides and handbook June 2014

Law at Work 2014

Chapter 4

How the National Minimum Wage is calculated

[ch 4: page 99]

There are different methods of calculating the hourly rate of pay for the purposes of the NMW, depending whether the worker is paid:

• a salary;

• according to hours worked (time work);

• according to output (piece work); or

• unmeasured work (involving specific tasks but no set times).

Information about calculating the NMW is available at: www.gov.uk/browse/working/tax-minimum-wage.

There is a Pay and Work Rights helpline: 0800 917 2368.

The TUC has a minimum wage calculator on its Worksmart website at: www.worksmart.org.uk/minwage_calc.php.