The Minimum Wage Exception report identifies employees whose calculated hourly rate falls below the National Minimum Wage(NMW), the National Living Wage (NLW), or the minimum apprenticeship rate. The report compares the employee’s hourly rate against the statutory rate applicable to their age.
To check the Periodic Employee Hours setting, follow the steps below.
Click Manage Payroll then click Payroll Checking.
Click View Gross to Nett then click the Minimum Wage tab.
Turn the Periodic Employee Hours toggle on or off as needed.
📌Note: We recommend enabling Periodic Employee Hours where the contracted hours on the employee’s contract do not represent weekly hours.
For example, if the pay group uses a fortnightly pay frequency and the contracted hours stored on the contract represent fortnightly hours, the toggle should be turned on.
How the hourly rate is calculated
The calculation used in the Minimum Wage Exception report depends on whether Periodic Employee Hours is enabled or disabled.
When periodic employee hours is enabled
The hourly rate is calculated as: Hourly Rate = Pay in Period ÷ Hours at Appointment Level
Example:
Pay frequency: Weekly
Pay in period: £600
Employee hours: 40
Hourly Rate: £600÷ 40 = £15
When periodic employee hours is disabled
The system calculates the hourly rate using the following values.
Annual pay: Pay in period × annual multiplier
Weekly pay: Annual pay ÷ minimum wage report weeks
Hourly rate: Weekly pay ÷ hours at appointment level
Annual multipliers by pay frequency:
Monthly: 12
Weekly: 52
Fortnightly or bi‑weekly: 26
Quarterly: 4
Half‑yearly: 2
Check the minimum wage report weeks
To view the minimum wage report weeks, follow the steps below in Portal.
Click Settings then click Pay Groups.
From the Pay Group Code dropdown menu, select the relevant pay group.
Click Next Page then review the Minimum Wage Report Weeks field.
📌Note: If this field is blank, the system defaults to 52 weeks.
Example (Periodic employee hours disabled)
Employee paid monthly
Pay in period: 2,600 pounds
Pay group minimum wage report weeks: 52
Employee hours: 40
Calculation
Annual pay: £2,600 × 12 = £31,200
Weekly pay: £31,200 ÷ 52 = £600
Hourly rate: £600 ÷ 40 = £15.00
For more information, check the Minimum Wage Exception report in the Minimum Wage User Guide.