Home / Care payroll and the minimum wage

Care payroll and the minimum wage

We run payroll for care homes, home care, supported living and nurseries, with travel time, sleep-ins and holiday pay recorded so every payslip meets the National Living Wage.

A care volunteer arriving at an older woman's front door
Example week for a care worker aged 21 or over£12.71 an hour
Care visits24 h£305.04
Travel between visitsCounts as working time under regulation 344 h£50.84
Sleep-in, woken to workAwake for the purposes of working1 h£12.71
Sleep-in, asleepExcluded by regulation 32(2)7 h£0.00
Travel from home to the first visitExcluded by regulation 343 h£0.00
Minimum pay for the week29 h£368.59

The hours a payslip has to cover

Travel between visits is working time. Time asleep on a sleep-in does not count, as long as suitable sleeping facilities are provided. Time woken to work on a sleep-in counts in full.

We record each kind of hour separately, so the minimum wage test can be run on every payslip.

Minimum wage rates for 2026 and 2027

Age or categoryFrom 1 April 2026From 1 April 2027
21 and over£12.71£13.21
18 to 20£10.85£11.27
Under 18 and apprentices£8.00£8.31
Accommodation offset, a day£11.10£11.53

The government accepted the 2027 rates on 28 October 2026.

Holiday pay for staff whose hours vary

For irregular-hours and part-year workers, holiday accrues at 12.07% of the hours worked in each pay period. Since the Working Time Regulations were amended by SI 2023/1426, it can be paid as a 12.07% uplift on each payslip for leave years starting on or after 1 April 2024.

Pay scales and the 2026 rate

Skills for Care's 2026 report put the median pay of care and support workers in England at £12.60 an hour in March 2026. The National Living Wage rose to £12.71 the following month, so pay scales set around that median had to move in April 2026.

Employer costs

Pay above £5,000 a year carries 15% employer National Insurance, offset by an Employment Allowance of up to £10,500 for an eligible employer. Employer pension contributions under auto-enrolment come on top.

Common questions

What is the accommodation offset for live-in staff?

£11.10 a day from 1 April 2026, rising to £11.53 from 1 April 2027. It is the most that accommodation provided by the employer can count towards minimum wage pay.

Do you run auto-enrolment pensions?

Yes. We run the pension contributions through payroll and make the submissions to your pension provider each pay period.

Can you check past payroll for minimum wage shortfalls?

Yes. We compare the hours that count, including travel between visits and time awake on sleep-ins, against the pay for each pay period and show you where any shortfall sits.

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Book a free payroll review

Send us a recent payroll report and rota and we will check the hours that count against the pay.

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