Martin Lewis has urged UK workers to inspect their payslips, following news of widespread underpayments.
Recently-released figured from the Low Pay Commission revealed 370,000 Brits on minimum wage were paid less than they should’ve been in 2024 — and if you’re earning on or around £11.44 an hour, you might be among them.
In the latest edition of the Money Saving Expert newsletter, Martin highlighted that changes to the minimum wage set for April this year mean ‘it’s even more important all those on lower incomes don’t just assume their employers are following the rules.’
The personal finance guru noted a government list of 524 businesses who failed to pay the minimum wage featured major brands like Easyjet, Greggs, Moss Bros and Estée Lauder, adding: ‘Even big names get it wrong.’
Essentially, whoever your employer, it’s worth a check to ensure you’re getting what you’re owed. And MSE’s handy guide makes it simple.
UK minimum wage
The National Living Wage is the name given to the minimum wage guaranteed to workers aged 21 and over, which currently sits at £11.44 an hour.
The National Minimum Wage applies from school leaving age, with a rate of £6.40 an hour for apprentices (in their first year) and under-18s, or £8.60 for those aged 18 to 20.
As of April 2025 however, these amounts will be going up. National Living Wage will rise to £12.21 an hour, while the rate for 18 to 20-year-olds goes up to £10.00 and for under-18s and apprentices it’ll be £7.55.
Remember, this is different to the real living wage – the amount required to get by – calculated by the Living Wage Foundation.
According to Martin, there are a few common reasons why you might be underpaid when or near minimum wage.
The first – and most common – is related to uniform, tools and safety clothing required to do your job.
‘If you must buy them, the cost shouldn’t take what you get below the equivalent minimum wage over your pay period,’ he explained.
Next is hours: if you factor in things like overtime, security checks, handovers, opening up, and being on call, does your hourly wage drop below the minimum?
Tips and overtime can also pose an issue, as these must be on top of minimum wage, and your employer can’t use them to ‘top up’ lower pay.
On the contrary, employers must top up earnings for those in ‘commission only‘ roles with a salary to meet the minimum wage if they don’t make enough.
Then there are accommodation costs, with MSE writing: ‘Pay can only be reduced by a maximum £69.93/wk below minimum wage if your employer provides accommodation. This includes charges such as rent, gas, electricity, furniture and laundry.’
Lastly, if you’re being paid as an apprentice but aren’t receiving structured training, this could mean you’re on the wrong rate.
If any of these ring true, you’re entitled to be paid more and to receive back pay going back a maximum of six years. But how you go about it willdepend on your relationship with your employer.
For those who are comfortable directly raising the issue, start off by having an informal chat with your boss or payroll department. Then, if this doesn’t resolve the issue, you can submit a formal complaint in writing.
Union members can get help from their representative throughout this, and in cases where you don’t receive a reply, or you’re unhappy with the outcome, you can get in touch with ACAS for further assistance.
For those who’d prefer to complain anonymously or lodge a complaint about a former employer, your best route is through submitting a form with HMRC.
MSE recommends making sure you tick ‘yes’ when asked if you’re willing to be contacted by HMRC, adding: ‘It told us it’s really difficult to investigate if you don’t.’
Unfortunately, it’s hard to remain completely anonymous if, for example, you work for a very small business. But while you may be scared of rocking the boat, remember that this is your legal right, and any decent employer will be keen to fix errors so their staff are fairly remunerated.
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