Most jurisdictions include legislative minimum rates of pay for different types of work. In order to verify the National Minimum Wage (NMW), there are several steps.
- Annual salaried workers require the number of annual hours each year in the workers contract to be specified in the annual salary scheme. Working days also need to be take into account.
- Daily and Weekly time- sheet based pay items require the number of hours per day/ hours per week to be specified in the timesheet scheme.
- Piece (output) workers may require a benchmark average rate of pieces completed per hour specified on the piece-based timesheet scheme.
- Multiple pay items e.g. salary, time and piece and any combination of each.
- NMW must be verified separately for each pay run. For example, the number of days in the pay period will vary.
- Deductions need to be included in the calculation.
- Accommodation provided as a benefit-in-kind, whether free to subject to a deduction must be carefully included.
- Where hourly work attracts premium rates of pay, e.g. overtime, this needs to be adjusted to the lowest pay rate in the pay period.
- Age and status (e.g. apprentice) must also be taken into account.
paiyroll® automatically generates a Wage Analysis report for every pay run that summarises NMW before every pay run approval. Ensure you keep the right side of the legislation.