NMWM09060 - Pay reference periods and elements of pay: National Minimum Wage pay: payments from the employer to the worker which count as remuneration

Relevant legislation

The legislation that applies to this page is as follows:

  • National Minimum Wage Act 1998, section 55
  • National Minimum Wage Regulations 2015, regulations 8, 9, 10 & 16

For National Minimum Wage purposes, payments paid by the employer to the worker mean:

Actual money payments

  • paid by the employer
  • to the worker (NMWM05020).
  • in his capacity as a worker
  • before any deductions are made.

If a payment satisfies the conditions shown above, it can count towards the worker바카라 사이트™s total remuneration for the pay reference period (NMWM09050).

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Amounts which do not count towards National Minimum Wage pay

Payments for National Minimum Wage purposes do not include any:

  • payment of an advance made under an agreement for a loan or by way of an advance of wages (NMWM09210)
  • payment by way of a pension, an allowance or gratuity in connection with the worker바카라 사이트™s retirement or as compensation for loss of office (NMWM09200)
  • payment of an award made by a court or tribunal (or to settle proceedings which have or might have been brought before a court or tribunal) unless it is a payment due under the worker바카라 사이트™s contract (NMWM09120)
  • payment related to a worker바카라 사이트™s redundancy (NMWM09290)
  • payment by way of an award under a staff suggestion scheme (NMWM09330)
  • benefits in kind (whether or not they have a monetary value) except amounts treated as payments for living accommodation in certain circumstances (NMWM10000)
  • vouchers, stamps or similar documents which can be exchanged for money, goods or services provided by the employer to the worker (NMWM09350).
  • payments in respect of arrears of National Minimum Wage. These are payments deriving from a statutory right and not the worker바카라 사이트™s contract.
  • repayments of Income Tax &/or National Insurance contributions.
  • Payments of a salary premium (from 6 April 2020), see NMWM09145.

These must be ignored when calculating a worker바카라 사이트™s total remuneration for National Minimum Wage purposes.