Living wages are paid

How to check that piece rate workers are paid at least the required minimum wages

If you pay by the piece, you need to check that workers, who are paid by the piece, receive at least the required minimum wage for standard and overtime. To do this:

  1. Record how many hours have been worked.
  2. Calculate how many standard and overtime hours have been worked.
  3. Calculate how much the worker would have been paid if each of the STANDARD hours worked had been paid at the appropriate minimum wage.
  4. Calculate how much the worker would have been paid if each of the OVERTIME hours worked had been paid at the appropriate minimum wage premium (in non-agricultural work, all hours could be paid at NMW levels as no OT premium is specified).
  5. Total the wage for standard and overtime = Hourly rate equivalent.
  6. Compare the hourly rate equivalent and the total piece rate wage.

If the total piece rate is less than the hourly rate equivalent:

  1. Make up the wage to the hourly rate equivalent. The difference = Hourly rate equivalent – Total piece rate.