MARTIN Lewis’ MSE has issued an urgent warning to 350,000 workers who could be underpaid.
In the recent newsletter, Martin has urged people who are on or just above the minimum wage to check if they are being “short-changed”.
It comes as the UK minimum wage rates were increased at the beginning of this month.
Despite the increase, the latest MSE newsletter reveals that 365,000 people are being paid less than they legally should be.
Martin said: “So if you’re on or just above minimum wage I want you to tool up to detect if you may be being short-changed and, if you are, how to be paid what you are legally entitled to.”
What are the national minimum wage rates
THE National Minimum Wage is the amount workers under 21 (but of school-leaving age) are entitled to.
The National Living Wage is paid to workers 21 and over.
Exactly what you’ll get depends on how old you are.
Here are the rates that came into force on April 1, 2024:
- Those aged 21 and over – £11.44
- For 18 to 20-year-olds – £8.60
- 16 to 17-year-olds – £6.40
- The apprentice wage – £6.40
There are various reasons why you might not receive the national minimum wage when you should, despite the fact that it is illegal.
For example, unpaid working time can cause your hourly rate to drop below the minimum level.
This includes overtime, training time or being asked to arrive early.
Your boss might not raise your salary when the rates increase every April or if you move into a higher wage bracket as you get older.
If you’ve had to buy a uniform for work, that can drag you below the minimum wage, too.
You can use the government’s new calculator by visiting checkyourpay.campaign.gov.uk to check you’re getting the correct amount based on your salary.
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What should I do if I’ve been underpaid?
There are a couple of options you have if you think you have been underpaid.
You could start by having an informative conversation with your boss.
Consider whether you want to receive back pay or just be paid a higher rate going forward.
It will be helpful to have evidence of your claim including payslips and an idea of how much you have been underpaid.
If an informal chat doesn’t work, you can make a formal complaint – check how to do this with your company’s HR department.
Following that, your final option is to take the company to an employment tribunal.
You can find out more about how to do this on MoneySavingExpert.com, or by checking with Citizens Advice.
The second option is reporting the company to HMRC online, which you can do anonymously.
As part of the claim, you’ll be asked for some personal details and questions about your complaint.
You should agree to let HMRC contact you as it might need more information to move your claim forward.
The tax office will launch an investigation if it has enough information and will take action if it determines that you have been underpaid.
It can make your boss repay you the amount that’s missing, and this can be backdated by six years at the current minimum wage rate.
Your colleagues will also get a refund if they’ve been affected.
HMRC could also fine your employer or take it to court if it refuses to pay out.
Bear in mind these investigations can take several months, so it’s not the quickest option to get the money you’re owed.
The main ways you may be underpaid
Here is a checklist you can use to find out if you are being underpaid
- Uniforms, tools and safety clothing – If you buy them the cost should not take your earnings below the minimum wage.
- You should be paid for all working time – such as overtime, meetings, opening up times.
- Tips – These should be on top of your minimum wage earnings
- Commission only – Your salary must be topped up by your employer to meet the minimum wage.
- Accommodation costs – Pay can only be reduced if your employer provides accommodation.
- Apprenticeships – 18+ check you are on the correct rate.
- Check for raises – Make sure you check when you are owed minimum wage rises and make sure you get them.
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