NMWM03150 - National Minimum Wage rates: the average hourly output rate

Relevant legislation

»Ê¹ÚÌåÓýapp legislation that applies to this page is as follows:

  • National Minimum Wage Regulations 2015, regulation 42

To calculate “fair� piece rates (NMWM03130) under the rated output work system, employers must first establish the average hourly output rate (NMWM03160) for the particular piece produced or task performed.

»Ê¹ÚÌåÓýapp average hourly output rate is:

  • the average number of pieces or tasks (including fractions)
  • which can be produced or performed in an hour
  • by an average worker
  • of the same employer
  • doing the same or similar work
  • in the same or similar conditions

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Establishing the average hourly output rate

To establish the average hourly output rate, an employer can either:

  • carry out a test (NMWM03160) of all his workers (or a representative sample) making a particular piece or performing a particular task, to find their average hourly rate, or
  • in certain circumstances, estimate (NMWM03170) the speed of production or the speed of performance of a particular task

Tests or estimates of the average speed that were done before the rated output work legislation came into force are valid, provided they comply with that legislation.