The government recently released its latest "name and shame" list of 202 companies which have failed to pay the correct wage to their workers. Employers were ordered to repay workers and pay fines of nearly 7 million, highlighting the importance of properly understanding the law around wage issues such as apprenticeship pay, salary sacrifice and deductions for uniform. Of the employers named on the list, 39% wrongly deducted pay from workers' wages, 39% failed to pay workers for the correct number of hours worked, and 21% did not pay the correct apprenticeship rate.

Calculating the national living and national minimum wages

Whether the national living or national minimum wage has been paid is based on the total remuneration within the pay reference period, which is one month unless the worker is paid by reference to a period which is shorter than a month (for example, a week, in which case the pay reference period is that period). Total remuneration is the gross amount paid to the worker in that pay reference period less any relevant deductions.

What payments are taken into account?

Not all payments made to the worker count towards the total remuneration. The following payments are taken into account:

• gross basic salary before any deductions for PAYE, national insurance or pension contributions;
• bonus, commission and any other incentive payments based on performance (excluding premiums for overtime and shift work);
• piecework payments; and
• any accommodation offset, subject...

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