Precision Utility
Commission Pay
Checker
Tax Year
2025/26
NLW (23+)
£12.21/hr
Check whether your commission-based pay meets the legal minimum for your age group. Enter your monthly base salary, commission earned and hours worked — the calculator instantly shows your effective hourly rate, compares it against the 2025/26 National Minimum Wage and highlights any shortfall.
Your Details
Minimum Wage Status
—
Total Monthly Pay
—
Effective Hourly Rate
—
Minimum Rate for Age
—
Meets Minimum Wage
—
Shortfall / Hour
—
Shortfall / Month
—
Shortfall / Year
—
How the commission pay checker works
Enter your annual base salary, the commission you earned this month and the total hours you worked. The calculator divides your base salary by 12 to find the monthly portion, adds your commission on top, then divides the total by your hours to produce an effective hourly rate.
That rate is compared against the correct 2025/26 National Minimum Wage or National Living Wage for your age group. If your effective hourly rate falls below the legal minimum, the tool highlights the shortfall per hour, per month and per year so you can see exactly how much you may be owed.
Results update automatically whenever you change any input. There is no need to press the button each time — though you can if you prefer.
Commission pay and minimum wage — what you need to know
Commission payments count towards minimum wage for the pay reference period in which they are received. Your employer must ensure that your total pay — base salary plus any commission — divided by the hours you worked in that period equals at least the National Minimum Wage for your age group. Here are the 2025/26 rates from 1 April 2025:
- 23 and over (NLW): £12.21 per hour
- 21 to 22: £11.44 per hour
- 18 to 20: £10.00 per hour
- Under 18: £7.55 per hour
Minimum wage compliance is assessed per pay reference period — usually a calendar month. A strong commission month does not offset a weak one. If your total earnings in any single period fall below the minimum when divided by your hours, your employer is breaking the law and must top up your pay.
Employers who underpay can face penalties of up to 200% of the arrears owed, capped at £20,000 per worker. Workers who suspect underpayment should contact the Pay and Work Rights Helpline on GOV.UK.
Frequently asked questions
Does commission count towards minimum wage?
Yes. Commission payments count towards minimum wage calculations for the pay reference period in which they are received. Your employer must ensure that your total pay — base salary plus any commission — divided by the hours you worked in that period equals at least the National Minimum Wage for your age group.
What if my commission varies from month to month?
Minimum wage compliance is assessed per pay reference period, which is usually a month. In months where your commission is low and your total pay divided by hours worked falls below the minimum rate, your employer is legally required to top up your pay to meet the minimum. A good month does not offset a bad one.
What are my employer's obligations for commission-based workers?
Employers must ensure that every worker receives at least the National Minimum Wage in each pay reference period. For commission-based roles, this means monitoring total earnings against hours worked each period. If commission alone or combined with a base salary does not reach the minimum, the employer must make up the difference.
How does minimum wage work for piece rate workers?
Piece rate workers — those paid per item produced or task completed — must still receive at least the National Minimum Wage. Employers can either track actual hours and ensure average pay meets the minimum, or use a 'fair estimate' of hours and set piece rates that would allow a worker performing at an average pace to earn at least 120% of the minimum wage.
Does travel time count towards minimum wage hours?
Travel time between assignments during a working day counts as working time for minimum wage purposes. However, your normal commute from home to your regular place of work generally does not count. If you travel directly from home to a client site that is not your normal workplace, that journey may count as working time.
How do I raise a complaint if my commission pay is below minimum wage?
If you believe your total pay falls below the National Minimum Wage, contact HMRC's Pay and Work Rights Helpline on 0300 123 1100 or submit a complaint online through GOV.UK. HMRC will investigate confidentially. You may also seek advice from ACAS or Citizens Advice. Employers found to be underpaying can face penalties of up to 200% of the arrears owed.