How to check compliance with minimum wage regulations in five easy steps

If you want to work out the National Minimum Wage for an employee, there are five steps:

Find out the relevant Pay Reference Period
Determine the type of worker
Calculate the number of hours worked
Work out the gross pay including all payments counting towards the national minimum wage
Compare the resulting hourly rate with the relevant national minimum wage rate:

Draw together all payments which count toward the minimum wage
Divide by the number of hours worked in the chosen pay referencing period
Compare the result with the national minimum wage rate for the worker in question

You should also confirm that they are eligible for the minimum wage, and that the employer has complied with the other national minimum wage regulations.

Further information

The Directgov website provides detailed guidance on how to calculate the National Minimum Wage, depending on whether the work being undertaken is time work, output work, unmeasured work or salaried work.

Other useful links:

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

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