Calculation guide
Pay reference period and minimum wage
Minimum wage is not checked by looking at one shift in isolation. The usual question is whether the worker received enough pay for the hours in the relevant pay reference period.
Why the period matters
National Minimum Wage pay is assessed by looking at pay and hours in the relevant pay reference period. For many workers this is weekly or monthly, but the correct period depends on how the worker is paid.
This is why two workers on the same hourly rate can get different outcomes if one has unpaid time, required work costs, or accommodation charges in the period being checked.
What to enter into the calculator
- The total hours worked in that weekly or monthly period
- The hourly rate or gross pay that relates to those hours
- Any required work costs paid in or for that period
- Accommodation days and charges for that same period
Useful source
HMRC's National Minimum Wage manual explains how total remuneration is considered within a pay reference period.