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Dividends are not included in the calculation of a worker’s total remuneration (NMWM09050) and therefore, do not count towards National Minimum Wage pay (NMWM09040). This is because they are not payments made in the worker’s capacity as a worker, rather they are payments linked to a shareholding.

Shareholders can also be workers or office holders (NMWM06240)

As with all payments it is important to consider the nature of the payment and verify whether a payment described as a dividend is actually a dividend. For example, some shareholdings may not qualify for a payment of dividends. Employers should be asked to explain the nature and provenance of any payments labelled “dividends� in order to consider how the payments should be considered for National Minimum Wage purposes.