AS minimum wage is set to increase in the upcoming Budget, thousands could be missing out on a pay rise if they don’t check their wages.
With nearly 500 firms slammed for failing to pay staff fairly, workers are urged to make sure their pay is correct – otherwise they could miss out on a pay rise this April.
Rachel Reeves is expected to confirm a 4% increase to the National Living Wage later this month, up from £12.21 to at least £12.70 an hour from next April.
Currently, those working an average 37.5 hour week earn £457 per week, but with the pay rise this would increase to £476 – an extra £19 a week or £988 a year.
If the wage increase is rolled out, the average yearly salary for a 40-hour week would rise from £25,376 to £26,416.
However, The Sun revealed last month that nearly 500 firms had been failing to pay some of their staff the minimum wage.
In total, around 42,000 people have had to be repaid by their employers after being left out of pocket, the Department for Business and Trade (DBT) said.
The biggest offender was fuel giant EG Group, according to the Government’s latest investigation of pay between 2018 and 2023.
Another in the top 10 was Centrica, owner of British Gas, who failed to pay £167,815 to 356 workers – amounting to about £460 on average.
The DBT released a list of more than 500 employers in June that underpaid workers between 2015 and 2022, including Pizza Express, Lidl and British Airways.
All affected workers have now been repaid, with the DBT saying it has already paid back £6milllion to those impacted.
But thousands of workers do not check their pay to see if they’ve been underpaid.
Minimum wage earners should urgently make sure they are being paid correctly, to avoid missing out on the potential pay rise in April.
Any workers who report their employer for failing to pay will be repaid following a successful investigation.
How to check if you’ve been underpaid
The National Minimum Wage is the minimum hourly rate almost all workers are entitled to.
People classed as ‘workers’ must be at least school leaving age to get the National Minimum Wage.
For those under 18 and apprentices, the rate is at least £7.55 an hour.
As it stands, workers aged 18 to 20 must earn a minimum of £10 an hour.
For the National Living Wage – which is slightly higher – workers must be aged 21 and over.
The current NLW is £12.21 an hour, meaning everyone over the age of 21 must be paid at least that amount.
While it is illegal for employers to underpay, there are several reasons why you might not be receiving the minimum amount.
Your employer might fail to increase your pay when rates rise in April or neglect to adjust your salary if you move into a higher wage bracket as you get older.
Another common issue is unpaid working time, like overtime, training hours, or being asked to arrive early for shifts.
This can lower your hourly rate below the legal minimum.
Even having to purchase a uniform for work can set your earnings below the minimum wage.
To check if you’re being paid correctly, you should use the government’s national living wage calculator.
This will help you determine whether your salary meets the legal requirements.
How to get the money you’re owed
If you think you’ve been paid less than you should have, there are two main ways to deal with the problem.
You can submit an anonymous report to HMRC online.
Throughout the process, you’ll be asked to provide personal details and information about your complaint.
Make sure you agree to let HMRC get in touch with you, as they may need more details to move your claim forward.
If HMRC finds sufficient evidence, they will open an investigation into your employer.
If underpayment is confirmed, HMRC can require your employer to repay the missing amount, backdated for up to six years at the current minimum wage rate.
If other workers have been underpaid too, they will receive repayments as well.
HMRC may issue fines to your employer or even take legal action if they refuse to pay.
However, these investigations can take several months, so it’s not the fastest way to reclaim your money.
Alternatively, you could start by having an informal conversation with your employer.
Decide whether you want to request the back pay you’re owed or simply ensure you’re paid the correct rate going forward.
Bring evidence to support your case, such as payslips and an estimate of how much you’ve been underpaid.
If the informal discussion doesn’t fix the issue, you can escalate it by making a formal complaint.
Speak with your company’s HR department for advice on how to do this.
If none of these steps work, your final option is to take your employer to an employment tribunal.
Have you been underpaid? here is how to get the money you are owed BACK
By James Flanders
If you believe you’ve been underpaid, there are two main ways to address the issue.
You can anonymously report the company to HMRC online.
During the process, you’ll need to provide personal details and information about your complaint.
It’s important to agree to let HMRC contact you, as they may need additional details to progress your claim.
If HMRC has enough evidence, they will launch an investigation into your employer.
If you’ve been underpaid, HMRC can force your employer to repay the missing amount, backdated by up to six years at the current minimum wage rate.
If other employees have also been affected, they will receive refunds as well.
HMRC may fine your employer or even take them to court if they refuse to pay.
However, these investigations can take several months, so it’s not the quickest route to recover your money.
Alternatively, you could begin with an informal chat with your boss.
Decide whether you’d like to request back pay for what you’re owed or focus on ensuring you’re paid the correct rate going forward.
Come prepared with evidence of your claim, such as payslips and an estimate of how much you’ve been underpaid.
If this informal discussion doesn’t resolve the issue, you can escalate by making a formal complaint.
Check with your company’s HR department for guidance on how to do this.
If all else fails, your final option is to take the company to an employment tribunal.
You can find detailed information on how to start the process through the moneysavingexpert.com or Citizens Advice
