Money guru Martin Lewis has issued a warning to hundreds of thousands of workers to check their payslips after figures revealed many were underpaid.
Around 371,000 people on the national living wage were underpaid in 2024, according to a report from the Low Pay Commission (LPC). Earlier last year, the commission also named 500 firms failing to pay the minimum wage.
Writing in his weekly email, Mr Lewis said: “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.”
From April, the minimum wage will increase by an above-inflation 6.7 per cent. This will see it increase from £11.44 to £12.21 for workers aged 21 and over. It will also increase to £10 for those aged 18 to 20, and £7.55 for apprentices and under-18s.
The most common causeof employer underpayments is expenses of mandatory uniform or equipment. Under current rules, if an employee purchases these, then the cost can not take them below minimum wage.
Another common pitfall is workers not getting properly paid for all the time that they work. This includes overtime, handovers, security checks, and being on call, which should all be paid.
Extra income from tips must also be paid on top of wages, not in place of, while money earned from commissions must be topped up to minimum wage if it falls below.
Workers who believe they have been underpaid can raise it with their employers directly, or go through HMRC if they’d rather stay anonymous. They can talk to a union representative or call the ACAS helpline for guidance, or if they do not feel their complaint is being handled correctly.
Baroness Philippa Stroud, LPC chair, said in December: “Too often the low-paid workers we speak with feel powerless and cut adrift from the institutions which exist to protect them. This can cause low-paid workers to put up with poor employment conditions and underpayment for fear of repercussions.
“The all-too-common experience of insecurity and uncertainty over their rights can discourage workers from reporting underpayment or trying to find better jobs. A strategy to end underpayment will begin with restoring low-paid workers’ confidence.”
