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Components of the minimum wage

The minimum wage consists of the basic wage and a number of allowances, e.g. for shift work and irregular working hours. Some income components, such as overtime pay, are not included in the calculation of the minimum wage. Your payslip will state the statutory minimum wage payable to you.

Components of the minimum wage

The statutory minimum wage is based on the gross wage payable for a normal working week, i.e. before overtime payments. Gross wage can consist of:

  • the basic wage agreed in your contract;
  • performance-related payments and allowances for shift work, irregular hours, etc.;
  • weekly or monthly fixed payments for the turnover you generate;
  • work-related payments by third parties, e.g. tips or payments agreed between you and your employer; 
  • the total of these amounts may not be lower than the minimum wage.

Income not included in the minimum wage

Some income components are not included in the calculation of the minimum wage:

  • overtime pay;
  • leave allowance;
  • profit shares;
  • special payments, e.g. incidental payments received for reaching sales targets;
  • future payments you receive subject to certain conditions (e.g. pension and saving schemes to which the employer contributes);
  • expense allowances;
  • end-of-year allowances.

Part-time work and the minimum wage

Your gross minimum wage depends on how many hours you work. If you work part time the gross minimum wage is proportionately lower.