From April 1 this year, the rates for National Minimum Wage and National Living Wage rates both rose and Martin has urged workers to check their payslips to make sure they have received the rise
Martin Lewis has warned that 365,000 are being underpaid by their employer after wages rose earlier this month.
The Money Saving Expert (MSE) website founder shared the warning in the recent MSE newsletter explaining that from April 1 the rates for National Minimum Wage and National Living Wage rates both rose. This should’ve seen workers receive more take home pay this month. However, Martin highlighted that around 365,000 people were being underpaid according to the Low Pay Commission. This means they are being paid less than they legally should.
Due to this, Martin urged those being paid the minimum wage to double-check their payslips and shared the “main” ways a person could end up being underpaid. He said: “So if you’re on or just above minimum wage, I want to tool you up to detect if you may be being short-changed and, if you are, how to be paid what you’re legally entitled to.”
The National Living Wage is an “obligatory” minimum wage businesses pay workers in the UK aged 21 and over for each hour they work. The National Minimum Wage is different and is the rate businesses pay those under the age of 21.
The first is through uniforms tools and safety clothing. Martin explained how if you need to buy them, then the cost shouldn’t take what you get below the equivalent minimum wage over your pay period, e.g. if you are monthly or weekly. He added: “This is the most common failing.”
Secondly, you should be paid for all your working time with Martin noting that this does include overtime, security checks, handover meetings, opening up, being on call & more. If you get less than minimum wage once these are factored in, you’re owed money. Alongside this, it’s important to remember that you should not be topping up your wage with tips or overtime – these extras must be on top of minimum wage.
For those who are on commission only, Martin says employers must top up your earnings with a salary to meet the minimum wage if you don’t earn it. In regards to accommodation costs provided by your employer, Martin said: “Pay can only be reduced by a maximum of £69.93 a week below minimum wage if your employer provides accommodation. This includes charges such as rent, gas, electricity, furniture and laundry. If you are over 18 years old and on an apprenticeship but there is “no structured training”, then Martin warns that you could potentially be on the wrong rate.
Martin says you should always check to ensure you get any and all minimum wage rises. He said: “It should have just increased, as it does every April, plus it should increase on your 18th and 21st birthdays, taking effect in your first full pay period after the change.”
The MSE founder said if any of these points “rang true” you should check if you are being paid enough. If you think you aren’t or weren’t under the old rates, you’ve got a legal right to be paid more and this does include back pay. To claim any underpayments back from your employer, you should fill out this online HMRC form here. They will investigate and keep your identity anonymous, with the power to provide you with up to six years of back pay.
Workers should also be checking their rates even if they work for a “big company”. Martin added: “Last year, over 200 companies including M&S, WHSmith, Lloyds Pharmacy and Argos were named and shamed by the Govt for minimum wage failings. Some explained why and talked about complexities, but even so, it shows no matter who the company or employment agency is, don’t assume it got it right.”
Living Wage and Minimum wage rates as of April 2024
- 21 and over – £11.44
- 18 to 20 – £8.60
- Under 18 – £6.40
- Apprentice – £6.40
These rates apply to all workers even if they are not paid hourly – for example, if you are over 21 and are working 35 hours a week your salary must be £20,820 plus a year.
What is the “Real Living Wage”
There is also a third rate of pay called the Real Living Wage. This is decided by the Living Wage Foundation (LWF) and the rate is set based on up-to-date living costs, taking into account the cost of bills, the weekly shop and other measures. It also applies to all workers over the age of 18. The Real Living Wage is a scheme which businesses and employers can sign up to voluntarily.
Currently, the Real Living Wage is set at £12 an hour for those outside of London and at £13.15 for those inside.
