NMWM08035 - Working time: salaried hours work: examples of using basic hours to identify time treated as worked
General
Example 1, monthly paid
Example 2, weekly paid
Example 3, two-weekly paid
General
The hours to be treated as worked in each pay reference period (NMWM09010) for a worker performing salaried hours work is derived from a calculation using the worker’s basic hours and pay reference period (NMWM08030). This calculation enables annualised hours in a calculation year (NMWM08040) to be treated as being worked evenly throughout a year.
Example 1, monthly paid
A monthly paid worker has 2080 basic hours in the calculation year 1 January 2019 to 31 December 2019.
To identify the time treated as worked for each pay reference period divide the basic hours by 12:
- 2080 ÷ 12 = 173.33 hours (173 hours 20 minutes)
As long as the worker does not exceed the basic hours in the calculation year, the employer must pay at least National Minimum Wage for 173.33 hours per month regardless of the time the worker actually spends working.
Example 2, weekly paid
A weekly paid worker has 2088 basic hours in the calculation year 7 January 2019 to 6 January 2020.
To identify the time treated as worked for each pay reference period divide the basic hours by 52:
- 2088 ÷ 52 = 40.15 hours (40 hours 9 minutes)
As long as the worker does not exceed the basic hours in the calculation year, the employer must pay at least National Minimum Wage for 40.15 hours per week regardless of the time the worker actually spends working.
Example 3, two-weekly paid
A worker paid every two-weeks has 2080 basic hours in the calculation year 4 January 2021 to 3 January 2022.
To identify the time treated as worked for each pay reference period divide the basic hours by 26:
- 2080 ÷ 26 = 80 hours
As long as the worker does not exceed the basic hours in the calculation year, the employer must pay at least National Minimum Wage for 80 hours per two-weeks regardless of the time the worker actually spends working.
Example 4, four-weekly paid
A four-weekly paid worker has 2080 basic hours in the calculation year 4 January 2021 to 3 January 2022.
To identify the time treated as worked for each pay reference period divide the basic hours by 13:
- 2080 ÷ 13 = 160 hours
As long as the worker does not exceed the basic hours in the calculation year, the employer must pay at least National Minimum Wage for 160 hours per four-weekly period regardless of the time the worker actually spends working.