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Martin Lewis issues warning for half a million workers on minimum wage being underpaid – are you missing out on £1,000s?
Keep scrolling to learn what to do if you are being unpaid
MARTIN Lewis has issued a warning for half a million workers on minimum wage who could be underpaid.
It comes as Chancellor Rachel Reeves confirmed in her Autmum Budget that she would raise the National Living Wage by 6.7% from April 6.
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But Martin has told employees who are on minimum wage there is a risk they could be getting paid less than they are entitled to.
He told listeners of his podcast that about half a million people on the minimum wage, "don't get paid minimum wage".
It is illegal for staff to not be paid minimum wage, but there are a number of reasons why you might not receive it.
For example, if you have to pay for a uniform or equipment out of your own pocket and it drags you below the minimum wage.
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He added: "Also all of your working time, including opening up and clocking out..that needs to be included in your assessment for minimum wage."
"You should be getting that pay rise April 6, because sometimes employers don't do it, or they don't know"
From this date, millions of workers will get a pay rise of £1,400 come 2025.
Speaking yesterday, Ms Reeves said: "I can confirm that we will accept the Low Pay Commission recommendation to increase the National Living Wage by 6.7% to £12.21 an hour."
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It was also confirmed that the National Minimum Wage for 18 to 20-year-olds will be hiked from £8.60 to £10 an hour – a 16.3% rise and the biggest increase in the rate on record,.
It will see eligible youngsters in full-time employment earn an additional £2,500 a year.
This is different to the "Real Living Wage" which was recently hiked by 60p to £12.60 an hour across the UK.
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The rates are separate from the government's national living wage, and employers have to volunteer to pay the extra amount.
You can find out which companies are signed up to pay the Real Living Wage on the foundation's website, www.livingwage.org.uk/.
If you want to make sure you are being paid a fair amount you can use the government's calculator tool to make sure you are getting the correct amount.
It can be found at, //checkyourpay.campaign.gov.uk/.
What should I do if I've been underpaid?
There are a couple of options you have if you think you have been underpaid.
You could start by having an informal conversation with your boss.
Consider whether you want to receive back pay or just be paid a higher rate going forward.
It will be helpful to have evidence of your claim including payslips and an idea of how much you have been underpaid.
If an informal chat doesn't work, you can make a formal complaint - check how to do this with your company's HR department.
Following that, your final option is to take the company to an employment tribunal.
You can find out more about how to do this on MoneySavingExpert.com, or by checking with Citizens Advice.
The second option is reporting the company to HMRC online, which you can do anonymously.
As part of the claim, you'll be asked for some personal details and questions about your complaint.
You should agree to let HMRC contact you as it might need more information to move your claim forward.
The tax office will launch an investigation if it has enough information and will take action if it determines that you have been underpaid.
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It can make your boss repay you the amount that's missing, and this can be backdated by six years at the current minimum wage rate.
Your colleagues will also get a refund if they've been affected.
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.
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