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What counts as pay in calculating the National Minimum Wage?
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Workers must be paid the National Minimum Wage for 'standard' work averaged over a pay reference period (eg if you are paid weekly, this will be a week).
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Some elements of pay will count towards the National Minimum Wage on top of gross basic pay. These include:
- Incentive payments, eg performance-related pay, profit-related pay and payment by results.
- Tips and gratuities, but only if paid or distributed through the payroll (ie cash tips cannot be included).
- Accommodation costs of a maximum of £4.30 a day, up to a maximum of £30.10 a week, can be offset against the Minimum Wage if an employee receives accommodation from their employer.
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