More flexibility in national minimum wage rules for salaried hours work

Implementation date: 6 April 2020

New rules increase flexibility for employers in how they calculate pay for salaried hours work, which permits an employer to operate a pay-averaging model over a year. The National Minimum Wage (Amendment) (No.2) Regulations (SI 2020/339) amend the National Minimum Wage Regulations 2015 (SI 2015/621) so that employers are able to:

  • pay salaried hours workers in payment periods other than monthly or weekly, such as fortnightly or four-weekly;
  • choose the calculation year for salaried hours workers; and
  • make premium payments to salaried hours workers in respect of basic hours, which will not be taken into account in national minimum wage calculations.