PART 1: DATES, DEFINITIONS AND OBLIGATIONS
All earnings included in gross pay are to be taken into account including: • incentive payments • time spent in travelling during normal working hours • time spent in training when the employee would normally have been working. Special circumstances to be taken into account: • earnings at basic rate only are taken into account in cases where enhanced rates are paid, e.g. overtime. • benefits-in-kind are ignored with the exception of accommodation provision. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Excluded classes of employee: • childminders • people working and living as part of a family (e.g. au-pairs). From October 2009 it is unlawful to include tips or gratuities in national minimum wage pay however these are paid or calculated. From October 2010 the adult rate of NMW kicked in at age 21 rather than the 22 years of age previously, and a new apprentice minimum wage of £2.50 per hour was introduced. The apprentice rate applies to those employed apprentices who are under 19, or those that are aged 19 and over but in the first year of their apprenticeship. The NMW does not apply to non- employed apprentices. From January 2011 agency workers who have agreed a salary sacrifice to fund travel and subsistence to clients must still receive national minimum wage post-sacrifice.
From 1st April 2017 NMW rates increase alongside the NLW changes.
From 1st April 2021 NLW applies to all workers aged 23 and over whilst entitlement to NWM applies up to and including age 23.
No printing, copying or reproduction permitted.
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