How to review your organisation's pay rates against the national minimum wage

Author: Sharon Tonks

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• 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.