National minimum wage - what counts as NMW pay, benefits in kind and accommodation

Introduction

You are required by law to ensure you pay your workers at least the national minimum wage (NMW). To see whether a worker's pay is in line with the NMW, it must be calculated in a particular way.

This guide outlines components of a worker's pay that count towards the NMW - such as bonuses - as well as those that are excluded, like the use of a company car or medical insurance. It also details special rules which apply to an employer who provides a worker with living accommodation.

These must be checked carefully when calculating if pay is in line with the NMW. Wrongly including an element of pay that doesn't count - such as an extra premium for overtime - could result in the NMW appearing to be paid when it is not.

Subjects covered in this guide

• Introduction
• What counts as national minimum wage pay - how to calculate it
• What counts as national minimum wage pay - how to treat deductions from pay and payments made by a worker
• What does not count as national minimum wage pay
• Benefits in kind and accommodation
• FAQs on the accommodation offset
• Tables and examples on benefits, expenses and accommodation in national minimum wage calculations

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