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How to use Birdie’s National Minimum Wage tool
How to use Birdie’s National Minimum Wage tool

A flexible way to check National Minimum Wage in the Agency Hub

Sabrina Treitz avatar
Written by Sabrina Treitz
Updated over a week ago

Please note: The following feature is available as part of Birdie’s Starter, Core, Advanced and Plus packages (Also known as Care Management, Rostering & Finance, Premium, Entry and Essentials) Please get in touch if interested in more information on this feature!

Birdie provides you with the visibility you need to understand if there is a potential National Minimum Wage top-up needed, giving you to flexibility to adjust and record a top-up where necessary.

How to review and add National Minimum Wage top-ups

To see anyone who is at risk of being paid less than NMW, first go to the Finance tab in the Agency Hub and click Pay runs on the left-hand menu.

Then click on the individual pay run you would like to see.

Here, you’ll see the list of pay data for that particular pay run, including:

  • Name of Caregiver

  • Pay for Care Delivery

  • Pay for Travel

  • Pay for Waiting time

  • Pay for Mileage

  • Any Extras that have been recorded (i.e. recording an additional payment); and

  • Pay Total

You’ll also see a ‘Tags’ section which includes ‘Check NMW’ tags. You’ll see these tags next to anyone that is at risk of being paid less than NMW.


How to get more context around the ‘Check NMW’ tag

To get more context around why a particular Caregiver has the ‘Check NMW’ tag next to their name, simply hover over the question mark icon. You’ll then see a pop up with more information, including: Current Pay, what that breaks out to for hourly pay, and what the minimum total pay would be for this carer. Additionally, you’ll see the top-up amount needed.

The calculation takes contact time (visits), travel time and waiting time and the pay for both of these and figures out the average hourly rate. If this rate is less than the NMW, we display this tag with the popover to identify the potential need for a top-up. Please note: per guidance waiting time is still considered working time, and thus needs to be factored into the NMW calculation.

This will allow you to make informed decisions on how to handle top-ups, for instance:

  • If you have additional context, you can choose to ignore this warning.

  • Or if you want to add a top-up, we’ll provide you with the minimum pay needed and you then can record a payment top-up from there!


How to add a NMW top-up

If you want to add a NMW top-up, simply click on the paysheet for an individual caregiver.

Within the paysheet, you can then click Record Payment on the Payments and deductions section.

Here, you’ll be able to add the NMW top-up by recording it as you would with any other additional payment.

You can give a name for this payment, such as a NMW top-up, and then enter the correct top-up amount. You can also add a description, such as the reason for recording the NMW top-up, and click Save.

Once you’ve recorded this NMW top-up, you’ll see this reflected back in the Pay Run, under the ‘Extras’ column in the table.


NMW calculations and FAQ

How is the NMW calculated?

Our NMW equation compares Total hours worked with Total pay. We always define these as:

Total hours worked = care hours + travel hours + waiting hours

Total pay = care pay + travel pay + waiting pay

We also include commuting hours and commute pay where they are clearly called out as "included" in the travel rate card.

FAQ

Are waiting hours included in the NMW calculation?

Waiting hours are always included in the Total hours worked (as per the relevant entry in the HMRC NMW manual). Waiting pay is included in Total pay if the "pay for waiting time" box is ticked.

Are breaks included in the NMW calculation?

No, Breaks are always excluded (as per the relevant HMRC entry here).

Are commutes included in the NMW calculation?

Commuting hours and pay will be included when the travel rate card explicitly indicates they should (as per the relevant HMRC entry here).


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