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Official guidance
National Minimum Wage Manual

NMWM09000 · Pay reference periods and elements of pay

  • NMWM09010 · What is a pay reference period?
  • NMWM09020 · How long is a pay reference period?
  • NMWM09030 · Payments made after the last day of work
  • NMWM09040 · The concept of National Minimum Wage pay
  • NMWM09050 · National Minimum Wage pay: calculating a worker’s total remuneration in a pay reference period
  • NMWM09060 · National Minimum Wage pay: payments from the employer to the worker which count as remuneration
  • NMWM09070 · National Minimum Wage pay: reductions from a worker’s total remuneration
  • NMWM09080 · Payments in respect of absences
  • NMWM09090 · What is an allowance for National Minimum Wage purposes?
  • NMWM09100 · Allowances: the effect on National Minimum Wage pay
  • NMWM09110 · Accommodation and accommodation related payments
  • NMWM09120 · Awards by a court or tribunal
  • NMWM09130 · Benefits in kind (excluding accommodation)
  • NMWM09140 · Bonuses
  • NMWM09145 · Salary premium for salaried hours work
  • NMWM09150 · Commission
  • NMWM09160 · Dividends
  • NMWM09170 · Expenses paid to the worker by the employer
  • NMWM09175 · Tax free payments for travel from home to a temporary workplace
  • NMWM09180 · Holiday pay
  • NMWM09190 · Incentive pay
  • NMWM09200 · Payments linked to leaving employment
  • NMWM09205 · Payments made by the employer at and after the end of the employment
  • NMWM09210 · Loan or advance of wages
  • NMWM09220 · "net pay" arrangements
  • NMWM09230 · Overpayment of wages
  • NMWM09240 · Overtime payments
  • NMWM09250 · Payments made in one pay reference period but treated as made in another
  • NMWM09260 · Pension payments
  • NMWM09270 · Premium rates of pay including shift premia: time work
  • NMWM09280 · Premium rates of pay including shift premia: output work
  • NMWM09290 · Redundancy pay
  • NMWM09300 · Salary sacrifice
  • NMWM09310 · Shares and securities
  • NMWM09320 · Statutory payments: Sick Pay, Maternity Pay, Paternity Pay, Adoption Pay, Shared Parental Pay and Parental Bereavement Pay
  • NMWM09330 · Staff suggestion schemes
  • NMWM09340 · Tips, gratuities, service charges and cover charges
  • NMWM09350 · Vouchers, stamps and similar documents
  1. Pay reference periods and elements of pay: contents
  2. Pay reference periods and elements of pay: payments linked to leaving employment

NMWM09200 | Pay reference periods and elements of pay: payments linked to leaving employment

From HM Revenue & Customs · National Minimum Wage Manual

Relevant legislation

The legislation that applies to this page is as follows:

  • National Minimum Wage Regulations 2015, regulation 10

The following do not count as payments under National Minimum Wage legislation:

  • A payment which refers to a worker’s redundancy (NMWM09290)

  • Any payment by way of a pension

  • Any payment in connection with a worker’s retirement

  • Any payment of compensation for loss of office.

Therefore, these payments do not count towards a worker’s total remuneration (NMWM09050) and are excluded from the calculation of national minimum wage pay.

For awards by a court or tribunal, see (NMWM09120).

For the treatment of common payments made by the employer at the end of the employment, see (NMWM09205).

For pay reference period for payments made after the employment ends see (NMWM09030).

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