Money Saving Expert (MSE) is sharing what you need to look out for if you think you are being underpaid. In his latest weekly email, the money experts said that last year alone, 370,000 people on minimum wage were underpaid.
Warning that your payslip may not tell the whole story, MSE, founded by Martin Lewis, is warning: “With the minimum wage set to jump in April, it’s even more important all those on lower incomes don’t just assume their employers are following the rules – even big names get it wrong.
“For example, in Feb 2024, Easyjet, Greggs, Moss Bros and Estée Lauder were among those included in the Govt’s list of 500 firms named for underpaying min wage, though some of the reasons were complex – a new list’s due soon.”
What is the UK’s statutory minimum wage rates?
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UK’s statutory minimum wage rates |
Apprentices & under-18s | Aged 18 to 20 | Aged 21+ |
| Current: (1 Apr 24 to 31 Mar 25) | £6.40/hr | £8.60/hr | £11.44/hr |
| April’s rise: (1 Apr 25 to 31 Mar 26) | £7.55/hr | £10.00/hr | £12.21/hr |
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Applies even if not paid hourly. So aged 21+, working 35hrs/wk is a £20,820+/yr salary (£22,222+/yr from April) |
Are you being underpaid?
Work clothing and tools
The MSE team say that if you need to buy your own uniform, tools and safety clothing, the cost shouldn’t take what you get below the equivalent minimum wage over your pay period (eg, monthly, if paid monthly).
Working extra hours
You should also be paid for working no matter what you do. This includes overtime, security checks, handovers, opening up, being on call and more.
Tips
The financial experts stress if you get less than minimum wage once these hours are factored in, you’re owed money. They do warn that you cannot “top up with tips or overtime” warning that “these must be on top of minimum wage.”
Commission only
If you are on commission only, your employer must top up with a salary to meet the minimum wage if you don’t earn it.
Accommodation
When it comes to accommodation costs, “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.”
Apprenticeships, 18 and 21st birthdays
If you are an apprentice or are turning 18 or 21, you need to be careful. MSE state that if you are aged 18 or on an apprenticeship which has no structured training, you may be on the wrong rate.
The minimum wage is set to rise in April of this year and if you are due to turn 18 or 21, it should increase on your birthday. This change will take effect in your first full pay period after the change.
If any of this possibly rings true, visit their Are you being paid enough? guide for a full explanation via the link.
How do I complain if I think I’m underpaid?
MSE caution that you have a legal right to be paid more and to back pay going back a maximum of six years and you cannot lose your job for raising this concern. If you’re unsure, you can call the ACAS helpline to talk through your options.
They suggest that if you’re in a union, speak to them about it and get them to represent you. If it isn’t resolved with an informal chat, you can submit a formal complaint in writing.
If the firm doesn’t reply, or you’re unhappy with the outcome, you can fill in this ACAS complaint form. You can also call 0300 123 1122.
You can also do it anonymously through HM Revenue & Customs (HMRC) by submitting a form. MSE say if there is an option to tick the box about being contacted about HMRC, click ‘yes’ or it will be hard to investigate and result in delays.
In their final warning, the experts say that each year, the real living wage may be different. A panel of professionals for the Living Wage Foundation calculate the minimum workers aged 18 or over should be paid for a basic standard of living.
Until October 2025, it’s set at £12.60 per hour. In London this is slightly more standing at £13.85 per hour.