National Minimum Wage and National Living Wage - rates and overview

What counts as pay for National Minimum Wage and National Living Wage purposes varies depending on several factors - including, for example, overtime, any premium pay rates, deductions you make from payroll, or payments the worker must make to you to do their job.

Payments that don't count towards minimum wage pay

Benefits in kind such as meals, fuel, a car, or employer pension contributions do not count towards minimum wage pay. If you provide living accommodation a set amount may count towards minimum wage pay.

You must make sure you pay your workers who are entitled to at least minimum wage pay. To see whether a worker's pay is in line with the minimum wage, you must calculate it in a particular way.

Only particular elements of a worker's pay can count towards their minimum wage pay. For example, loans, pension payments, redundancy payments, and the premium element of overtime pay do not count towards minimum wage pay. Also, some deductions and payments from workers will reduce minimum wage pay. For more information, see National Minimum Wage and National Living Wage - calculating minimum wage pay.