Rate of record
Hospitality and the minimum wage
Pubs, restaurants, hotels and bars run into the most edge cases: tips, live-in accommodation, split shifts, uniform laundering. The NMW rules apply per pay reference period, against hours actually worked.
Tips do not count toward NMW
Tips, gratuities, service charge and tronc payments do not count toward NMW pay. They have not since 1 October 2009. NMW must be paid out of base pay first; tips are additionalgov.uk.
The Allocation of Tips Act 2024
The Allocation of Tips Act came into force on 1 October 2024. Employers must pass on 100% of tips to workers, allocate them fairly and transparently, and publish a written tipping policy. Tronc arrangements must be documentedgov.uk.
Accommodation offset for live-in pub roles
Where an employer provides a room (the classic live-in pub role), the daily accommodation offset is £11.10 in 2026/27. Rent charged above that cap reduces NMW pay pound-for-pound.
Split shifts and waiting time
Time on call or waiting at the workplace counts as time work. A waiter sent to the stockroom during a quiet hour is still on time work. A worker required to stay on premises during a 4pm-6pm gap between a lunch and dinner shift is on time work for that gap; an unpaid break only counts if they are free to leave.
Uniform and laundry
A required uniform that the worker must buy from the employer counts as a deduction. A required uniform the employer provides is fine. A laundering charge crosses the line if it pushes pay below NMW.