Minimum wage for different types of work

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Paid by the hour

Workers paid according to the number of hours they are at work are classed as doing 鈥榯ime work鈥�.

For these workers, the average hourly pay has to be at least the National Minimum Wage, worked out over the period each pay packet covers. For example, if a worker gets paid once a month, this period will be 1 month.

Example

Workers in a call centre are paid for the number of hours they work each month.

Alan works in the call centre. He is 20 and is eligible for the National Minimum Wage rate of 拢10.00. He works a total of 140 hours during the month of January.

This means he must be paid at least 拢1,400 for this month鈥檚 work (拢10.00 multiplied by 140).

Use the National Minimum Wage calculator to check if payments are at least at the minimum wage.

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Part of Employ someone: step by step

  1. Step 1 Check your business is ready to employ staff

    1. Prepare your business to take on employees

  2. Step 2 Recruit someone

    You need to advertise the role and interview candidates. You can use a recruitment agency to do this or do it yourself.

    2. Find out about using a recruitment agency

    As an employer you must make sure you recruit employees fairly.

    1. Avoid discrimination during recruitment
    2. Make your application process accessible for employees with disabilities or health conditions

  3. and Check they have the right to work in the UK

    1. Find out how to check an applicant's right to work

  4. and Find out if they need a DBS check

    You may need to check someone's criminal record, for example, if they'll be working in healthcare or with children.

    1. Find out if you need a DBS check
    2. How to do a DBS check

  5. Step 3 Check if they need to be put into a workplace pension

    Check if you need to put your employee into a workplace pension scheme:

  6. Step 4 Agree a contract and salary

    When someone accepts a job offer they have a contract with you as their employer.

    1. Check what the National Minimum Wage is for different ages
    2. Check what the National Minimum Wage is for different types of work
    3. Check what to include in a contract
    4. Agree a written statement of employment particulars

  7. Step 5 Tell HMRC about your new employee

    You must tell HMRC about your new employee on or before their first pay day.

    1. Tell HMRC about a new employee
    2. Get their personal details and P45 to work out their tax code
    3. If you don鈥檛 have their P45, use HMRC鈥檚 鈥榮tarter checklist鈥�
    4. Check what to do when you start paying your employee