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A pay reference period is the worker’s normal pay period. For example, those paid weekly will be assessed over a week whereas those paid monthly will be assessed on their monthly pay.
Pay comprises salary, commission, bonuses, overtime, statutory sick, maternity or paternity pay.
The following examples are taken from TPR’s guide, ‘Assessing the workforce’.
Stewart receives a fixed basic salary, regardless of how many hours he’s worked in the month, and is paid monthly. This is paid on the last working date of the calendar month. This payment relates to work done during the period from 1st of the month to the end of the month, e.g. the pay reference period for March runs from 1 March to 31 March. The first day of the next pay reference period is 1 April.
Ann receives a fixed, basic salary regardless of how many hours she has worked in the month, and is paid monthly. This is paid on the 23rd of each month. The payment relates to work done between the 24th and the 23rd day of the following month. Ann’s March pay reference period runs from 24 February to 23 March.
Jermaine is paid weekly on a Friday for the hours worked during the week, beginning on a Monday and ending on the Sunday. His pay reference period runs from Monday to Sunday.
Mira receives her pay on a Friday for the hours worked during the week, beginning on a Saturday and ending on that Friday. Mira’s pay reference period runs from Saturday to Friday.
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