BrightPay can track employee hourly rates against the National Minimum/Living Wage (including apprentices), UK Living Wage, London Living Wage, or they can be marked as not eligible.
- An employee’s minimum wage setting can be set at Employee Details > Employment tab > 'Minimum wage profile', or alternatively, in Payroll via 'Edit Settings' button > Employment tab > Minimum wage profile
- To enable BrightPay to test whether an employee is receiving the National Minimum Wage, BrightPay needs to know the number of hours worked for each period. For hourly paid employees, this is automatically calculated. For non-hourly paid employees, see below.
- Using the employee's age (on pay date), number of hours worked in period, and minimum wage profile, BrightPay can determine the effective hourly rate used and compare it against the required minimum hourly rate.
Hourly Paid Employees
- When BrightPay detects that an hourly paid employee's wage is below the National Minimum/Living Wage it will indicate this using a yellow status bar within 'Payroll'
- If the Minimum Wage Settings are incorrect or you wish to turn off the Minimum Wage flagging you can use the edit button to make the relevant changes.
Note: the minimum wage flag will only alert the user if the setting has been enabled. The setting can be found under Employer tab > Edit Details > Typical Employee > Minimum wage section 'Flag where employees are paid below minimum wage (hourly paid only)':
Non-Hourly Paid Employees (or workforce reporting in general)
- To help with non-hourly employees (or for workforce reporting in general) there is a feature in Payroll > More > Minimum Wage Report
This allows you to enter/confirm the number of hours worked for each employee and generate a summary to see who passed minimum wage and who didn’t.
The setting ‘Typical hours worked per period' in Employees > Employee > Edit Details > Employment can be used to provide a default value for non-hourly employees.
- This report can be run in both open and closed pay periods:
- Press Continue to see the result for each employee, i.e. Pass or Fail
Some minimum wage fields are available within Analysis for reporting requirements, further information on creating reports can be found here
Minimum Wage Warning Enhancement
A new warning message has been introduced (from tax year 2026/27) when attempting to disable the flag for employees paid below minimum wage.
This mirrors the behaviour in the desktop version and helps prevent accidental changes, ensuring compliance with minimum wage requirements.
Note: BrightPay's Minimum Wage Report calculates the effective hourly rate based on total pay for the period. Statutory payments such as SSP are included in this calculation and there is no option to automatically exclude them.
If you need a more accurate NMW audit that separates statutory payments from contractual pay, you can create a custom report in the Analysis section to track statutory payments separately, then use this alongside the Minimum Wage Report to identify any periods where statutory pay may be affecting the calculation.
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