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Posted Thu, 28 Apr 2022 15:53:09 GMT by Ben Yates
HI In order to calculate NMW compliance for Salaried workers in "fixed hours per week" contract. Would the Annual Salary be divided by 52 or 52.1 weeks?
Posted Wed, 04 May 2022 11:47:13 GMT by HMRC Admin 19
Hi,

The hours for which you must pay a worker the minimum wage depend on the type of work being performed. For NMW purposes, there are four types of work; salaried hours work, time work, output work and unmeasured work. For a worker to be classed as salaried hours work, they must meet certain criteria explained in the following guidance at Calculating Minimum Wage type of work:

Types of work

The hours worked and calculation are based on establishing a basic number of hours for which the worker is to be paid. How you calculate this will depend on your circumstances and will vary from employer to employer however, examples can be found in the above guidance. 

If you have any further queries about your circumstances, please contact ACAS on 0300 123 1100 who should be able to assist you. 

If you are an employer and require advice relating specifically to working arrangements you have in place or are considering introducing, then please seek independent legal advice.

Thank you.
 

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