Payments and allowances not counted toward the national minimum wage

Payments for work beyond the normal responsibilities of a job do not count toward the national minimum wage, including payments for:

• Working in unpleasant or dangerous conditions
• Undertaking special duties
• Being on standby or on-call
• Working in a particular place (geographical weighting)
• Working in specified circumstances

Other types of payment that do not count include:

• Benefits in kind
• Cars
• Meals
• Vouchers
• Pension payments
• Redundancy payments

Additionally, the following do not count toward the fulfillment of the national minimum wage provisions:

• Payment for absence
• Payment in respect of a previous pay referencing period
• Premiums for overtime of shift working or rates for output work
• Payments such as tips not paid through payroll
• Reimbursement of expenses
• Deductions for clothing, tools, and the like

Further information

• Business Link
• Directgov

Reviewed and updated by the HR Services Partnership - April 2010.

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