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Understand the basics

Find out about the basics of calculating the National Minimum Wage including what a pay reference period is, what pay counts as National Minimum Wage pay and how to treat 'benefits in kind'.

It is recommended that you read this article before trying to calculate your National Minimum Wage pay.

• Calculating the National Minimum Wage: the basics

Calculations for time or salaried hours

If you are paid according to the number of hours you are at work, you are doing time work. If you are paid in equal weekly or monthly instalments for an agreed basic number of hours over a year you are a salaried worker.

The calculation to work out if you are being paid at least the National Minimum Wage for time or salaried hours is very similar. However, different things count as 'working hours' - so first you need to be clear about how long you have worked. For help calculating this, follow the link below.

• Calculating the National Minimum Wage: time work or salaried hours

If your employer provides accommodation

If your employer provides you with accommodation, they can count some of its value towards National Minimum Wage pay. This is called the accommodation offset. For help understanding when the accommodation offset applies and for calculating your pay for National Minimum Wage purposes, follow the link below.

• Calculating the National Minimum Wage: when your employer provides accommodation

Calculations for output workers (piece workers)

If you are paid for the number of things you make or tasks you do then you are probably an output worker - also called a piece worker. Your employer can either pay you the National Minimum Wage or a fair piece rate for each item you produce or task you perform. For more information on calculating fair piece rates, follow the link below.

• Calculating the National Minimum Wage: output (piece) work

Calculations for unmeasured work

If you do not think you are doing time work, salaried hours work or output work then you are probably doing unmeasured work. You are still entitled to the National Minimum Wage. For information on calculating if you are being paid at least the National Minimum Wage rate, follow the link below.

• Calculating the National Minimum Wage: unmeasured work