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National minimum wage calculation

In this article, we explain how to enable and calculate national minimum wage.

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Written by Lucy Robbie
Updated this week

If you need to set up a national minimum wage, you'll first need to make sure that this is enabled for your system. If it isn't, please contact support via our Access Digital Assistant and ask them to enable this module for you.

Minimum wage calculations do not automatically apply to every service type or ad hoc payment type. Each category must be individually configured to determine whether it should be included in the calculation process.

In addition, minimum wage requirements often vary across different age groups. These age‑based thresholds can also be configured to ensure that the system applies the correct rate for each employee.

Service type

You can choose whether each service type is included in minimum wage calculations. To update these settings, follow these steps.

📌Note: All service types are included by default.

  1. Click Settings, then click Service User.

  2. Click Service User, then click Service.

  3. Click Types, then select the relevant service type.

  4. Select the Exclude from Minimum Wage Calculation checkbox if that service type should not be included.

📌Note: If new service types are added after minimum wage calculations have been enabled, they'll automatically be included unless you manually tick Exclude from Minimum Wage Calculation.


Ad hoc payment types

Ad Hoc Payment Types can be individually set to either be included in or excluded from minimum wage calculations. To configure these settings, follow these steps.

📌Note: By default, all Ad Hoc Payment Types are included in minimum wage calculations. Only exclude those that should not contribute to the calculation.

  1. Click Settings, then click Finance.

  2. Click Payroll, then click Adhoc Types.

  3. Select the relevant adhoc type.

  4. Select the Exclude from Minimum Wage Calculation checkbox if that payment type should not be included.

📌Note: If new ad hoc payment types are added after minimum wage calculations have been enabled, they'll automatically be included unless you manually tick Exclude from Minimum Wage Calculation.


Age range

You can configure minimum wage rules and apply different rates to specific age ranges within your system.

Once all age ranges and values have been entered, the system will automatically apply the correct minimum wage rates when Pay Runs are processed on or after the specified From Date.

An employee’s age range is determined at the start of the payroll period.If an employee has a birthday during the payroll period that moves them into a new age band, their updated rate will not apply until the next full payroll period.

To set this up, follow these steps.

  1. Click Settings, then click Other.

  2. Click Company.

  3. From the QuickLinks select Minimum Wage.

  4. Click the plus icon and add the new minimum wage setting.

  5. Complete the From Date and Reasons fields.

  6. Click save.

  7. From the QuickLinks select Details.

  8. Click the plus icon and add a new single age range.

  9. Complete the to age and value.

  10. Click Save.

🤓Tip: Repeat steps 7 to 10 for each age group.


Minimum wage calculation

When a Pay Run is processed, the system checks whether the total amount payable to an employee meets the minimum wage requirement for their age range. If the employee’s average hourly rate falls below the configured minimum wage, the system automatically applies a top‑up to bring their pay up to the required level.

The system uses the following formula:

To calculate this, the system first determines Pay and Time based on the rules configured.

Definition of pay

Pay is calculated as:

The total pay for all visits, only where the Service Type is included in Minimum Wage calculations.

plus

The total travel time pay.

plus

The total of all Ad Hoc payments, only where the Ad Hoc Payment Type is included in Minimum Wage calculations.

Definition of time

Time is calculated as:

The total duration of all paid visits -only where the Service Type is included in Minimum Wage calculations, and using either planned or actual duration as defined in the Pay Rate Sheet Revision.

plus

The total calculated travel time, whether paid or unpaid.

Once the Average Hourly Rate has been calculated, the system compares it to the minimum wage rate for the employee’s age range.

If the average hourly rate < the minimum wage rate, then the system automatically applies a top‑up.

The top‑up amount is calculated as: Top-up amount = After pay - pay

This ensures the employee receives at least the minimum wage for the hours worked within the payroll period.

Definition of after pay

After Pay represents the amount an employee should receive based on the minimum wage rate for their age range. It is calculated as:

After pay = minimum wage rate for the employee's age range x time.

This figure reflects the minimum total pay the employee must receive for the hours included in the minimum wage calculation.


Understanding national wage calculation

Access People Planner automatically creates and processes a range of information to support Minimum Wage compliance. All relevant data is visible within the system and can be exported for reporting or audit purposes.

Within each Pay Run, the total Minimum Wage Top‑Up amount is displayed as a single figure.


Selecting this figure opens the Pay Run Minimum Wage Management screen, where you can view a detailed breakdown showing exactly how each employee’s top‑up amount has been calculated.

This screen provides a transparent overview of the calculation process, helping organisations ensure that all employees receive at least the statutory Minimum Wage for the time they have delivered.

Column definition

Column

Definition

Name

The employee’s full name.

Hours

The total time is incorporated into the calculation. This includes reconciled visit durations for service types in Minimum Wage calculations and the calculated travel time.

Before hourly rate

The average hourly rate paid before any top‑up is applied. This is calculated by dividing the Before Value by the number of Hours.

Before Value

The total amount paid for reconciled visits, paid travel time, and any relevant ad‑hoc payments.

Minimum wage top-up value

The additional amount needed to ensure the employee receives at least the Minimum Wage. This is the difference between the 'After Value' which should be paid and the 'Before Value' which was calculated as pay.

After Hourly Rate

The applicable minimum wage rate for the employee, based on their age at the start of the payroll period.

After Value

The total amount payable, including the Before Value and the Minimum Wage Top-up Value.

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