Understanding working time and minimum wage rules
Employers must ensure they pay staff at least the National Minimum Wage (NMW) or National Living Wage (NLW). These are the legal minimums that apply to eligible workers across the UK. The latest rates came into effect on 1 April 2025. Currently, the NLW stands at £12.21 per hour. Meanwhile, workers aged 18 to 20 must receive at least £10.00 per hour. Those aged 16 to 17 and apprentices are entitled to £7.55 per hour.
How to calculate minimum wage correctly
Although the minimum wage is set as an hourly rate, it applies regardless of how someone is paid. Therefore, even if a worker receives an annual salary or is paid per task, employers must calculate the equivalent hourly rate. This ensures the worker receives at least the minimum wage.
To do this accurately, it is essential to understand what counts as working time under NMW rules.
What counts as working time and minimum wage rules
According to HMRC guidance, working time includes:
- Time spent at work and required to be working or on standby near the workplace.
- Time spent waiting due to machine breakdowns while remaining at the workplace.
- Time spent waiting to collect goods, meet someone, or begin a job.
- Travel between work assignments or to training sessions.
- Time spent under work-related responsibilities, even when sleeping at the workplace.
What does not count as working time
However, certain periods do not count. These include:
- Travel between home and work.
- Rest breaks, holidays, sick leave, and maternity leave.
- Time spent on industrial action.
- Time at the workplace when allowed to sleep and a sleeping area is provided.
