How do I check that pay meets National Minimum Wage rules?

Start with the rate that applies to the worker, including the specific apprentice rules, and check when a birthday or annual rate change takes effect. Then establish the pay reference period and type of work, because hourly and salaried work have different calculation rules. Use the hours that count under the legislation, which can include required training, additional work and travel between work assignments. Ordinary commuting is generally different. Do not simply divide an annual salary by the contracted hours and assume the result proves compliance. Keep actual time records where needed, and investigate differences between scheduled hours, payroll hours and the time people are really expected to work.

Not every item included in gross pay counts towards minimum wage pay. Tips do not count, and some deductions or payments for employment expenses, such as required uniforms, can reduce the pay used in the calculation. Salary sacrifice also reduces the relevant cash pay and must not take it below the applicable minimum. Accommodation has specific offset rules. Use HMRC’s current calculation guidance and rates rather than a figure saved from a previous year. CASS can help you review payroll and working arrangements together, spot workers close to the threshold and correct the process. If there is a shortfall, check arrears and recordkeeping obligations as well as fixing future pay.