NMW rate for employees paid in arrears

Question

We have monthly payroll with pay day on the penultimate working day of the month. Hourly paid employees are paid in arrears so March hours are paid in April. Should the April payroll for March hours include the new NMW rate or the old one?

AndyR. · Accepted Answer

Hi Reka H-I, I checked with our support teams and they advised as follows: 
 NMW will be flagged based on process date rather than pay reference period, however if you want to process based on the reference period you can do. This just means if April is processed the on old rates then the usual warning messages will appear. 
 There's more information about calculating the NMW here from HMRC - Calculating the minimum wage 
 Andy, Sage UKI

Sage 50 Payroll UK

NMW rate for employees paid in arrears

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