By Sharon Tonks
Be aware that almost all workers are eligible to receive the national minimum wage; Keep up to date with the correct minimum wage rates and the annual timetable for changes; Establish which pay reference period will apply to each worker; Work out the gross pay received during the pay reference period for each eligible worker, following the rules that set out what should be counted as pay for this purpose; Calculate the number of hours worked, using the right method depending on the type of work, then divide the gross pay received by the number of hours worked to check that no worker is paid less than the minimum wage; If any worker is found to be being paid less than the minimum wage, pay any arrears due to them immediately using the correct formula and increase the worker’s pay to the minimum wage level or higher; Keep adequate records to prove that the minimum wage is being paid.
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- Be aware that almost all workers are eligible for the national minimum wage
- Check the rates of the national minimum wage
- Anticipate changes to the minimum wage rates
- Ensure that each eligible worker is receiving the minimum wage
- Establish the pay reference period
- Calculate the remuneration that counts towards the national minimum wage
- Employee benefits
- Accommodation
- Annual bonuses
- Lawful deductions
- Calculate the hours worked
- Time work
- Salaried hours work
- Piece, or output, work
- Unmeasured work
- Take action to correct any underpayment
- Keep records to show compliance
- Example national minimum wage calculations
- Example – apprentice pay
- Example – pay reference period and age
- Example – commission
- Example – shift, overtime and substitution pay
- Example – tips, and age
- Example – accommodation
- Example – bonus
- Example – advance of wages
- Example – time work
- Example – sick leave
- Example – piece work
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About the author
Sharon Tonks
Sharon (Tonks) Amps is senior HR manager for Amazon EU. She specialises in HR support and organisational development, including the management of change projects, changing terms and conditions, restructures, outsourcing and redundancies on a UK and international basis and has expertise in investigating complex dispute cases.
In addition, Sharon trains business and HR professionals on a wide range of employment topics including investigation expertise and change management and is also a Chartered Member of the CIPD. She holds a master’s degree in human resource management.
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