Pay Reference Period for minimum wage
The relevant Pay Reference Period is the period of working time used to calculate whether a worker has been paid the national minimum wage. The Pay Reference Period is the normal pay period of a worker up to a maximum of one month, for example one week, two weeks, or four weeks.
Time that counts towards minimum wage calculations:
- Hours worked
- Travel time on business but not travel to and from home
- Time spent in training
- Time travelling to and from the place of training except when training takes place at work
Time that does not count towards minimum wage calculations:
- Sickness absence
- Holidays
- Rest breaks
Calculating the minimum wage
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.
Further information:
Reviewed and updated by the HR Services Partnership – April 2010.
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