MILLIONS will get a pay rise as minimum wage is set to rise to £12.70 an hour – here is how you can check your pay.
The National Living Wage is expected to jump by about 4%, up from £12.21 to at least £12.70 an hour.
Shadow Chancellor Rachel Reeves is expected to announce the pay boost in the autumn budget on Wednesday, November 28.
The increase is set to come as part of plans to improve living standards.
The rate is not set in store, but is likely to be confirmed in the budget later this month.
If confirmed, the move would lift the average salary for a minimum wage worker on a 40-hour week from £25,376 to £26,416.
Those aged 18-21 will also get the higher rate for the first time.
However, a number of businesses have voiced concerns over the matter.
City executives have said that the rising minimum wage is now edging closer to the starting salary for graduate roles in accountancy, law and finance firms.
Thousands of youngsters apply for starting roles at large audit and accountancy firms each year.
The pay is not great, but many are lured in by the training and brand prestige which can help boost their careers in the long run.
But bosses are worried that young workers may ditch these roles for a minimum wage job elsewhere, especially if the pay is similar.
Data from the Institute of Student Employers, and published in the Financial Times, shows the lowest graduate salary for roles in finance and professional services is £25,726 while the median is £33,000.
The highest comes in at £65,000 a year.
One chief executive told the outlet: “Why would young people take on £45,000 of student debt if they can earn the same stacking shelves”
“It would actually be damaging for social mobility because only the people who can afford to pay their way through university will be immediately incentivised to do so.”
Speaking to the FT, Steve Rigby, chief executive of software company Rigby Group, said that while the rising minimum wage was “a social achievement”, the jobs market was now “rewarding non-skilled labour over university-educated and indebted labour”.
Last month, business leaders also warned that raising the living wage above the current inflation rate of 3.8% will “price jobs out of existence”.
Who gets the National Minimum Wage and am I entitled?
TO qualify for the National Minimum Wage, you have to be of school-leaving age, which is usually above 16.
You are eligible to receive the pay rate if you work full-time, part-time or as a casual labourer.
You are also entitled to the National Minimum Wage if you are an agency worker.
Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period.
The rates also apply to disabled workers.
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment.
Many employers are still struggling with wage increases, higher National Insurance contributions (NICs), and new waste and packaging taxes introduced in April 2025.
Kate Nicholls, head of the trade body UKHospitality, previously warned: “Businesses are already struggling to absorb all the costs from last year, two successive years of significant minimum wage rises and crucially NICs.
“We have seen 100,000 jobs lost as a direct result of that. If you want fair pay, you have got to have sustainable businesses.
“If you are pricing those jobs out of existence, it doesn’t matter how high the minimum wage goes.”
Supermarket bosses have also warned the move could lead to higher prices at the till.
Sainsbury’s boss Simon Roberts said supermarkets already work with tiny profit margins and extra costs have to go somewhere.
However, many unions have said the move would be good for workers and the economy.
How to check if you’ve been underpaid
The NMW is the minimum hourly rate for workers who have finished school.
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.
The NLW applies to workers aged 21 and over and is slightly higher.
At present, everyone over the age of 21 must be paid at least £12.21 an hour.
However, there are several reasons why you might not be receiving the minimum wage, despite it being illegal for employers to underpay.
One common issue is unpaid working time, which can lower your hourly rate below the legal minimum.
This includes tasks like overtime, training hours, or being asked to arrive early for shifts.
Your employer might fail to increase your pay when rates rise every April or neglect to adjust your salary if you move into a higher wage bracket as you get older.
Even having to purchase a uniform for work can reduce your earnings to below the minimum wage.
To check if you’re being paid correctly, you can use the government’s national living wage calculator.
It will help you determine whether your salary matches the legal requirements.
How to get the money you’re owed
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.
