New alert issued by taxman as it blasted ‘unacceptable’ issue which ‘should be reported’
Employees have been encouraged to scrutinise their payslips this festive season to ensure they are receiving at least the minimum wage. HMRC has issued a reminder to temporary seasonal workers and those on short-term contracts that they are legally entitled to the same minimum pay rates as their counterparts.
Individuals are advised to verify their hourly wage and be vigilant for other elements that could result in underpayment.
Such factors include unpaid work hours, such as arriving early or staying late to open and close premises, cleaning, or undertaking compulsory training outside of working hours.
HMRC also highlighted that if employers deduct costs for items like uniforms or equipment, resulting in an employee’s pay falling below the minimum wage, it is ‘unacceptable’ and should be reported.
The national minimum wage hourly rates are currently:
- £12.21 – Age 21 and over (National Living Wage)
- £10.00 – Age 18 to 20
- £7.55 – Age under 18
- £7.55 – Apprentice (aged under 19 / aged 19 or over and in the first year of their apprenticeship)
“If your payroll’s playing Grinch, HMRC will play judge, jury and invoice. My advice to workers this Christmas is check your age-band minimum wage rate, check your hours and check for any deductions,” said HR expert Kate Underwood.
“Keep rotas, clock-ins and payslips. If it’s wrong, raise it in writing.”
If you’re a worker aged 21 or over, and not in your first year of an apprenticeship, you are legally entitled to at least the National Living Wage.
If you are in an apprenticeship, check our apprenticeship page for further information.
As of 1 April 2025, this is £12.21 per hour.
- Old rate up until 31 March 2025: £11.44
- New rate from 1 April 2025: £12.21
Previously, the National Living Wage was only available for those aged 23 and over.
HMRC said: “No employer is exempt from paying their workers the statutory minimum wage. It is illegal for your employer to pay you below the National Living Wage, so check your pay and talk to your manager to make sure you’re getting the wages you are entitled to. “
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Check your pay using our online calculator
Find out if you are being paid correctly by using the National Minimum Wage and Living Wage calculator.
Check if:
- you’re getting paid the National Minimum Wage
- you’re getting paid the National Living Wage
- your employer owes you past payments from the previous year because of underpayment
Use the calculator here.
