UK: National minimum wage and other worker entitlements

UK: National minimum wage and other worker entitlements

  • Country

    United Kingdom

  • learning hour's


  • Material Year



Calculating correct National Minimum Wage (NMW) and National Living Wage (NLW) payments is a crucial field for organisations to get right, but the potentially complicated calculations as well as identifying those entitled make this an overly-difficult endeavour which is often underestimated.

This course begins with a detailed overview of NMW & NLW which includes the current rates payable. It then moves to identify who is eligible to be paid the minimum wage, then details the calculation steps and lists the payments to include and exclude from the calculations. Compliant record-keeping requirements and the compliance activities undertaken by HMRC and BEIS are also examined.

This comprehensive course concludes by highlighting the most common errors to avoid with NMW & NLW payments.

Who is this course for?

Payroll Administrators, Payroll Coordinators or Payroll Supervisors working in either a payroll bureau, accountancy firm or in-house payroll team who have minimum/living wage entitlement calculations as part of their remit.

Payroll Managers & HR Managers with responsibility for ensuring their organisations are compliant with minimum/living wage rates would equally benefit.

What will you achieve?

To provide you with the confidence to review current procedures and pay systems to ensure ongoing compliance with NMW/NLW regulations.

- Identify workers that are eligible for the minimum wage
- Identify which minimum wage rate applies to various categories of worker
- Identify the pay and hours to include and to exclude
- Calculate minimum wage pay for different types of work
- Apply annual rate increases
- Comply with record-keeping requirements
- Correct an underpayment of the minimum wage
- Avoid the most common minimum wage errors

        Course Trainers

        • Fiona Smith

          Before joining the CIPP as a full-time trainer in September 2019, Fiona worked in payroll in different organisations for over 9 years including her role as Assistant Group Payroll Manager for Breedon Group Services, the UK’s largest independent construction materials firm. Fiona holds the CIPP Foundation Degree in Payroll Management and the CIPD Diploma in HR Management and uses the knowledge gained in both of these within her training role to ensure that CIPP members have the information, skills and knowledge they need to keep up to date with the ever-changing payroll obligations.

        What will be covered?

        Review of NMW/NLW:

        • Define the current NMW & NLW rates.
        • Defining the correct NMW category for individuals.
        • Summarising the Voluntary Living Wage and outlining the differences between this and NMW/NLW.
        • Explaining how to conduct an annual review of NMW & NLW rates.

        Classifying workers entitled to NMW/NLW:

        • Analysing the worker status factors & relevant case law.
        • Summarising future worker status developments.

        Calculating NMW/NLW entitlement:

        • Defining the Pay Reference Period.
        • Administering pay correctly against Pay Reference Period for NMW purposes.
        • Outlining the steps for undertaking calculations to ensure compliance with NMW & NLW.

        Summarising the wider implications of NMW/NLW payments:

        • Listing pay elements included and excluded for NMW/NLW pay purposes.
        • Identifying the implications of salary sacrifice schemes for NMW/NLW pay.
        • Outlining the Living Accommodation offset.
        • Summarising deductions from pay & work-related cost implications for NMW & NLW.

        Outlining the record-keeping requirements:

        • Highlighting the legislation governing NMW & NLW record requirements.
        • Explaining HMRC & worker rights to access NMW/NLW records.

        Summarising NMW/NLW compliance activities:

        • Outlining the compliance steps undertaken by HMRC.
        • Summarising the naming & shaming scheme undertaken by BEIS.
        • Listing the common errors in calculating NMW & NLW payments.

        Summarising other relevant worker entitlements:

        • Listing other contractual rights for workers.
        • Highlighting employee rights not available to workers.
        • Explaining the specific rights for agency workers.