Money-saving gurus over at Martin Lewis’ MSE website have warned that swathes of Brits may not realise that they’re being underpaid, despite changes to the National Minimum Wage
Droves of Brits have been warned their latest paycheck may be incorrect, following a major shakeup. Last month (April 1) the National Minimum Wage increased – meaning more than one million workers across the UK, including apprentices, should start to see a boost in their bank accounts.
The new rates, which are applied to your first full pay cycle after April 1, sees hourly rates increase from £11.44 to £12.21 for those aged 21 and over, while those aged 18-20 will be paid £10 per hour (compared to £8.60). Those under 18 have had their rate increase from £6.40 to £7.55, while apprentices will be paid £7.55 per hour (compared to last year’s £6.40 rate).
Contrary to popular belief, the national minimum wage is not optional. And still, hundreds of huge firms – including Greggs and Easyjet – have admitted to underpaying their staff in the past. Martin Lewis’ Money Savings Experts site has therefore urged workers to double-check their pay slips to make sure they’re being properly compensated.
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“If you’re paid the legal minimum (as 1.6 million people in the UK are) there’s no wriggle room in your salary,” the publication wrote. “So any mistakes, like unpaid working time or wage deductions, put you at risk of being underpaid.
“Many who believe they’re on minimum wage are in reality being paid LESS than they should be – the Low Pay Commission estimates over 370,000 people were underpaid in April 2024. While bad bosses refusing to pay proper wages are an issue, most of the time underpayments happen by mistake.”
The money-saving gurus went on to explain that purchasing essential items to be able to do your job (such as tools, uniform, and safety equipment shouldn’t cause your wage to drop below the legal minimum during that pay reference period. This applies to those buying equipment in a shop, making direct payments to their employer, or having the costs come out of their salary.
Workers should also be paid for all of their working time. This spans from overtime to training courses, travelling time, waiting time, and ‘slivers’ of time added to your shift (such as being asked to arrive early to open up). “‘Unpaid working time’ also includes time spent on call at your workplace, and time spent travelling (if it’s part of your job),” MSE added. “For instance, if you’re a social worker doing home visits, your salary must cover the time it takes you to travel between each of your clients’ homes, as well as the time you spend with them.”
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If you think you’ve been underpaid, you can use the government’s national minimum wage calculator to help you figure out exactly what you should be expecting for each paycheck. If this confirms you’re not being compensated properly, speak to your boss to see if they can rectify the issue.
However, if you’re no longer working with the employer – or feel like you can’t confront them about the issue – get in contact with HMRC. They can start an investigation if you fill out an online form, and can remain anonymous. If HMRC finds you haven’t been paid the minimum wage it can make your employer pay you back – and this can be backdated by six years.
“The main downside of going through HMRC is the time it takes – particularly if you work for a big company,” MSE warns. “When you submit a complaint, HMRC will look into the salaries of EVERYONE who works at your company, as well as all potential causes of underpayment. So it can take a while (often many months), but if any issues are found, everyone affected will get a refund.”
Alternatively, you can go to an employment tribunal. However, you’ll need to act quickly and escalate your complaint within three months from the last time you were underpaid.
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