The UK minimum wage increased on 1 April - upping incomes for the lowest-paid workers.

Yet many who think they’re on the minimum wage are actually being paid LESS than they should – this could be almost half a million people, according to the Low Pay Commission. 

What’s the minimum wage?

The minimum wage is the legal minimum an employer can pay anyone working in any UK nation, and the rate varies by age.

Rate since 1 April 2022

Apprentices - £4.81

Under-18s - £4.81

Age 18-20 - £6.83

Age 21-22 - £9.18

Age 23+ - £9.50

However, confusingly, back in 2015 the then Chancellor George Osborne announced he was renaming the ‘minimum wage’ for then over-25s (now over-23s) as the 'national living wage'.

I spoke out at the time, as this was stealing the brand of the Living Wage Foundation – a charity I've long supported.

Each year The Living Wage Foundation announces its REAL living wage; a voluntary employers' wage scheme, based on an assessment of the actual cost of living (and it’s due an update soon). Currently in the UK it’s set at £9.90/hr, except London where it’s £11.05/hr – so higher than the minimum wage above – but not compulsory. 

Almost 10,000 UK employers have pledged to pay the real living wage. You can check whether yours is one of them on www.livingwage.org.uk.

How you could be underpaid the national minimum wage

While bad bosses refusing to pay proper wages are an issue, most of the time underpayments happen by mistake. Here are some of the reasons you may have been underpaid.

  • Don't think 'I work for a big firm so it must be correct' In 2021, 191 companies - including John Lewis, Body Shop International and Sheffield United FC - were 'named and shamed' by the Government for failing to pay correctly.

Paying for a uniform or safety equipment which takes you below minimum wage

This is a firms' most common failing. If you have to buy a uniform or safety equipment and doing so takes your equivalent hourly salary under the minimum wage, your employer should cover the cost, so you still earn at least the minimum.

Employers can't 'top you up' with commission, tips, or overtime

Your base salary must at least be the legal minimum wage. If you're commission-only, the firm must ensure that you receive at least the equivalent of minimum wage for the hours worked.

You should be paid for ALL the time you work

If you spend time going through security checks, doing handover meetings, being on call (at your workplace), or closing/opening up your place of work, this is work and should be hours you’re paid for. If not, you’re owed money. This also includes travel time if it's part of your job, such as a care worker doing home visits.

If your employer provides you accommodation, it can reduce your pay – but only by a set amount

The rules on this are complicated, so I suggest if you’re in this situation, you read the full rules at www.moneysavingexpert.com/nationalminimumwage.

Yet simply, if your employer provides you accommodation, this can be taken into account when working out whether you've been paid the correct minimum wage or not – and you could be paid less than the minimum wage.

You should get a pay rise every year on 1 April, and see an increase when you turn 18, 21 and 23

The national minimum wage increases every year on 1 April, so you should expect to receive a pay rise from the first full pay cycle after an increase comes in.

Don’t accept the lower apprentice rate if you’re not actually an apprentice

To be classed as an 'apprentice', your contract must include some form of paid structured training time. If it doesn’t, you should legally be paid the minimum wage, rather than the lower apprentice wage (currently set at £4.81/hr) – even if you're called an 'apprentice' by the company you work for. Or, if you’re 19 and over and have completed the first year of your apprenticeship, you should also be paid the minimum wage.

What to do if you think you’re underpaid?

If you think you are being (or were being) underpaid, you've a legal right to be paid more and to backpay (max six years). First, do a couple of online checks. Use the Government’s www.gov.uk/am-i-getting-minimum-wage calculator to help you check what you should be getting paid.

Or call the free ACAS helpline on 03001231100 – it can't provide legal advice, but can provide general advice and explain the risks and benefits of going forward with your complaint.

Then, if you feel comfortable approach your employer and ask them if they’ve made a mistake. Or, if you prefer you can ask HMRC to contact them (you’ll remain anonymous) – you can submit a quick form on www.gov.uk.