The minimum wage floor
Set before any deduction for the company's benefit is taken from an employee.
A deduction for the company's benefit must never take an employee below the minimum wage. Maliru no longer works out take-home pay, so it checks the floor itself.
Setting it
Open Pay › Company deductions › Minimum wage floor. For the United Kingdom and Ireland, Maliru proposes the figures, with the date they were last checked against the government's own; press Use these figures to start from them. Anywhere else, enter your own bands. Check them, change anything that is wrong for you, tick that you have checked them, and choose Save and confirm. The tab carries a dot until the floor is set.
Until the floor is confirmed, no deduction for the company's benefit is taken from any employee. Each one is listed on the run as an exception. Repayments of an advance or a loan are still taken.
Age bands
Where rates depend on age, the floor has a band for each. The UK figures have 21 and over, 18 to 20, Under 18 and Apprentice. The first band applies to everybody unless their record says otherwise.
Maliru does not hold dates of birth, so set a person's Minimum wage band in the Company deductions section of their Pay tab under Users. If you remove a band somebody is on, nothing for the company is taken from them until you choose another, and their Pay tab says A band the floor no longer has.
How the check works
Maliru checks on qualifying pay and qualifying hours, not on gross:
- Qualifying pay is salary, plain time, day rates, piece work and bonuses, plus the basic-rate part of overtime and premium time. The extra on top of an overtime or premium hour, allowances, holiday and sick pay, corrections to other periods and reimbursements are left out.
- Qualifying hours are the hours worked, as the clock recorded them. Leave is not counted.
Then (qualifying pay − deductions for the company) ÷ qualifying hours must stay at or above the floor. If an instalment would breach it, the run takes less, says why, and carries the rest forward. Every deduction for the company in the run shares the room the floor leaves, oldest first.
For example, an hour of overtime at ×1.5 that paid £18 counts as £12, its basic-rate part. On gross the hour looks well clear of the floor; on qualifying pay it may leave no room at all.
With no hours on the clock in the period — a salary or a day rate with nothing clocked, say — the check can't be made, and nothing for the company is taken.
Contractors are not checked against the floor: they are paid for their services, not wages.