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

The working hours that apply for minimum wage purposes depend on the type of work being performed - whether they are salaried, time, output or unmeasured workers.

If a worker does different types of work for you or for different employers the rules and calculation of hours apply differently for each type of work that the worker does.

Time and salaried work

The hours of work that count for minimum wage purposes for time and salaried work includes any time when a worker is:

• at the workplace working - excluding the length of their rest breaks and any payment for these
• at work and required to be available for work - it makes no difference whether or not you actually provide work for that time
• required to be available for work either on standby or on-call at or near their workplace - however there is an exception if the worker is permitted to sleep during this time and is provided with sleeping facilities - see minimum wage working hours - sleeping between duties
• time spent travelling on business - see National Minimum Wage and Living Wage - time spent travelling on business

Output work

The hours of work that count for minimum wage purposes for output work include any:

• time spent travelling on business - see National Minimum Wage and Living Wage - time spent travelling on business
• hours specified in a 'fair estimate' agreement or time actually worked
• if the worker works from home, time travelling from home to other work premises

Unmeasured work

The hours of work that count for minimum wage purposes for unmeasured work include:

• time spent travelling on business - more information on time spent travelling, see National Minimum Wage and Living Wage - time spent travelling on business
• hours specified in 'daily average' agreement or time actually worked
• if the worker works from home, time travelling from home to other work premises

Example scenarios: workers making themselves available for work

You call a time worker into your factory to help with an urgent order, but the delivery is delayed. While the worker is at the factory and required to be available for work you must pay them at least the minimum wage for the time - even though they cannot do any work.

However, if the worker is at home waiting for you to call them into work you do not have to pay them the minimum wage for the time they are at home. They would only be entitled after they have arrived at work and while they are working.