Martin Lewis has warned 500,000 people could be earning less than they should be.
The consumer champion shared the advice on yesterday's episode of Good Morning Britain. Martin issued financial tips to help viewers navigate their way through the cost-of-living crisis for the second edition of Wallet Wednesdays.
The finance guru explained how anyone on minimum wage should check they are not being underpaid. He said: "Don't assume if you're on minimum wage working for a big firm that you're being paid the right amount."
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Up to 500,000 people are on minimum wage in the UK and Martin explained how they could be getting paid less than they should be. He said: "It’s important to understand this isn’t just for people who are paid hourly. This applies even if you are on a salary. For example, if you work 35 hours a week and you’re aged 23 then you should earn a minimum of £19,964 a year. Those are the rates, but people can still be underpaid"
Martin shared eight ways people could be being underpaid on minimum wage.
Uniform
If workers must buy their uniform then the cost must not take them below minimum wage
Paid for all working time
Martin explained employees must be paid for all working time including working time, overtime training, travel time, not commuting, waiting time, opening up time. He added: "So let’s say you’re doing a security check and you’re not paid for that. At the start of your shift, you don’t get paid.
"You only get paid once your hours start. If you were to factor those hours in and that was to take you below minimum wage, which it would for anyone who’s only at the bottom end of minimum wage, then you are being underpaid."
Minimum wage should rise
The finance guru said minimum wage should rise each April on the first full pay cycle. He added: "If you started being paid second of April to second of May, then you would get the money for that, and your pay should go up when you turn 18, 21, 23 because there are different rates."
Accommodation
Employers who pay for a worker's accommodation as part of their job are allowed to reduce what you get below the minimum wage. However, this is only by a maximum of £63.70. He added: "That includes any accommodation costs for gas, electricity, furniture and laundry that you get as part of your accommodation."
Tips
Martin explained how tips must be on top of the minimum wage. He said: "Your basic standard minimum wage must be part of that. And if you have a higher overtime rate and they try and use that as a justification, why they can give you a lower standard rate, it doesn’t work. The standard rate you get should be at minimum wage."
Commission only
If an employee on commission only is not getting the minimum wage then employees must top it up. Martin said: "If you do not have set hours, they need to work it out via a fair estimate of how long it would take you to do the job getting towards the end the apprentice rate."
Apprentice rates
Martin said you must be a "real apprentice" to be paid apprentice rate. He added: "You need to be a real apprentice, and that means you should have structured training as part of what you do.
"If not, you’re not an apprentice. You should be on the rate for your age, and you may be being underpaid if you’re not."
A company's size does not matter
Martin urged employees of big firms to not assume they are getting paid the correct wage. He said: "we have had name and shames of John Lewis, Sheffield United Body Shop and many other big companies who have got it wrong. So don’t assume if you’re on minimum wage working for a big firm that you’re being paid the right amount go through this checklist."
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