National Minimum Wage: Pay that counts towards the National Minimum Wage

Earnings used to calculate the NMW are known as NMW pay. NMW pay is calculated on gross pay (before tax and National Insurance have been taken off). Gross pay includes basic pay and other types of pay which count towards the NMW. For example, sales commission and performance-related pay.

Some payments don’t count towards NMW pay and should be deducted from total pay before considering if the NMW is being paid. Payments which don’t count include:

For details of what pay counts towards the national minimum wage, please refer to the Calculating the national minimum wage section of Gov.UK.

Updated 16 May 2013