Half a million people on minimum wage could be getting underpaid, Money Saving Expert (MSE) founder Martin Lewis has warned. The UK minimum wage increased on April 1, rising 6.6 per cent for for those aged 23 and over to £9.50 per hour.
Workers aged from 21 to 22 also saw their pay rise by 9.8 per cent to £9.18 per hour. However, Wales Online reports that Martin Lewis and the MSE website say that "many who think they are on minimum wage are in reality actually being paid less than they should".
The Low Pay Commission (LPC), an independent body that advises the government about the National Living Wage and the National Minimum Wage, believes this could be almost half a million people. The MSE website has therefore issued a guide to help people claim back some of the money they may be owed.
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Firstly, MSE has highlighted eight ways minimum wage workers may being underpaid without realising it. These include
- Having to buy uniform or safety equipment
- Not being paid for overtime, training time, travelling time and waiting time
- Not getting a pay rise on each April and on certain birthdays
- Pay reductions for employer-provided accommodation
- Tips and overtime being used to 'top up' pay
- Being a commission-only worker
- Woking for a big firm and assuming they are following the rules
- Workers being paid apprentice rates when they are not apprentices
Anyone who suspects they are being underpaid is being urged by MSE to check using the Government's National Minimum Wage and Living Wage calculator for workers here. Once they've checked, MSE advises raising the matter directly with their employer - or if they have left the company or want to act anonymously, raise it with the HMRC.
However, even those receiving the correct wage are likely to be struggling with rising living costs. When the minimum wage rises were introduced on April 1, Low Pay Commission chair Bryan Sanderson said that while the National Living Wage increase of 6.6 per cent "gets us back on track to reach the 2024 target of two-thirds of median earnings, it will unfortunately likely be a real terms cut".
He continued: "Though, 21-22 year olds will receive a real terms increase with a rise of 9.8 per cent. We will soon make this group eligible for the NLW and judged it sensible to close the gap between the rates over a longer period, rather than a very large increase once they become eligible.
"The Low Pay Commission met with around a hundred representative bodies last year before making its recommendations. We are frequently their main sometimes even their only advocates. With government support we will continue to try to ensure that they do not suffer from the neglect which was so often characteristic of the past."
"Minimum wage workers across the United Kingdom continue to play a vital role in ensuring a strong post-pandemic economic recovery. In previous years the LPC has sought to keep increases to the minimum wage above inflation. However, inflation is now expected to be higher than the forecasts we had when we made our recommendations last October.
"Workers on the minimum wage; care for our elderly and sick, harvest and deliver our food, and do a multitude of other tasks which help us all. Many public sector workers including for example teaching assistants will also shortly be included. They all deserve to be properly remunerated and respected as key members of our society.
