National Minimum Wage and National Living Wage - calculating minimum wage pay

Introduction

Guide

To see whether a worker's pay is in line with the National Minimum Wage or National Living Wage, you must be aware of when a worker is entitled to be paid it and what pay actually counts as minimum wage.

From 1 April 2024, the minimum wage rates will increase and the National Living Wage will be extended to workers aged 21 years old and above. For further information, see minimum wage rates increase from 1 April 2024.

Elements of minimum wage pay must be checked carefully. Wrongly including an element of pay that doesn't count - for example, an extra premium for overtime - can result in it appearing you are paying the minimum wage when you are not.

This guide describes when a worker is entitled to be paid the minimum wage. It explains the pay that does and does not count towards the minimum wage and the basic method of calculating whether it has been paid.