 |
|
|
Minimum wage FAQ
| «
Are salaried staff exempt
» |
|
Is it legal for salaried staff to be exempt from the NMW? |
|
No, all employees, regardless of the way in which they are paid, are entitled to receive NMW rates unless they are younger than 16 or on an accredited training course (18 - 21 years olds only for the first 6 months). Salaried staff gross pay less benefits, expenses, overtime and any shift allowances should be divided by the number of hours worked within the period the salary covers to arrive at an equivalent hourly rate, this rate should be equal to or exceed the NMW for the age group that the employee fell into at the time the hours were worked.
|
| «
Are tips part of the NMW
» |
|
Can tips be included for the calculation of the NMW? |
|
From 1st October 2009 the law disallows the inclusion of service charges, gratuities, tips and cover charges to be included for the calculation of the NMW. The effect of this is that the employee must be paid an equivalent hourly rate equal to or greater than the NMW rates for the age group that they belong to. If an employer use tips etc to increase the amount paid so as to be able to comply with with the NMW they are breaking the law.
|
|
