National minimum wage ― hours worked

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

As set out in the National minimum wage ― overview guidance note, when testing to see whether a worker is being paid at least the appropriate national living wage (NLW) or national minimum wage (NMW) minimum rates, the total of pay for a pay reference period has to be divided by the number of hours of work in that pay reference period and the result compared with the appropriate minimum hourly rate. In most cases, the number of hours worked in a reference period is obvious but this guidance note sets out how to calculate the number of hours of work in all circumstances, according to whether the worker is engaged on:

•
salaried hours work
•
time work
•
output work
•
unmeasured work

Detailed BEIS guidance is available on the GOV.UK website. There is also a Helpline available operated by ACAS on 0300 1231100.

Extended meaning of work

In addition to time spent actually working, the following count as hours worked for the purposes of the NMW calculation:

•
hours spent on business

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