Hi Glenfarcle24,
A shift premium rate of pay should be included in a worker’s total remuneration when calculating the National Minimum Wage.
However, if a worker is doing either time work or output work, you do not include the shift premium and use the lowest hourly rate in calculating a worker’s NMW pay.
This is to ensure that workers are receiving the minimum wage as an absolute basic before any premium or overtime rates are added.
For more information please refer to:
Overtime and shift premia
Please note that HMRC cannot comment on specific arrangements without undertaking a full National Minimum Wage investigation.
HMRC can only provide general advice and signpost to available guidance.
If you are concerned that you are not being paid what you are entitled to you can raise a complaint to HMRC using our online form:
National Minimum Wage enquiries and complaints
Alternatively, if you require any further support, please seek independent legal advice, or contact The Advisory, Conciliation and Arbitration Service (ACAS) on 0300 123 1100.
Thank you.
