Millions of low-paid workers will get a pay boost to their wage packet from today as the minimum wage is set to rise. The minimum wage is the lowest hourly rate an employer has to legally pay you, depending on your age. It applies to both full-time and part-time workers.
Many employers do pay above the minimum wage. In her Autumn Budget last October, Chancellor Rachel Reeves confirmed minimum wage will rise by 6.7% from April. The Government estimates this will give a full-time worker earning the main minimum wage an extra £1,400 a year. Of course, the exact amount will depend on how many hours you work.
Speaking last year, Ms Reeves said: “This Government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.” Deputy PM Angela Rayner added: “A proper day’s work deserves a proper day’s pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record.” Is the rise in minimum wage going to help you? Let us know: mirror.money.saving@mirror.co.uk
If you are above the age of 21, then the minimum wage is known as the National Living Wage, while anyone under the age of 21 is paid the National Minimum Wage. Both the National Living Wage and the National Minimum Wage will increase to the following rates from this April:
There are some people where minimum wage rates do not apply – this includes those who are self-employed, volunteers and company directors. Some companies pay the Real Living Wage, which is a voluntary pay that is based on the cost of living and is higher than the statutory minimum wage.
More than 15,000 employers pay the Real Living Wage, including Aviva, Everton FC, Ikea, Burberry and Lush. The Real Living Wage is rising to £12.60 an hour outside London, and £13.85 an hour inside London. Employers must implement these new rates by May 2025. Your company needs to be signed up to the Real Living Wage scheme, and you need to be above the age of 18, for this to apply.
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You have to be paid at least the minimum wage by law. If you think you may be being underpaid, start by checking your payslips. There is also a minimum wage calculator on GOV.UK that can help you work out if you’ve been underpaid. If it looks like you haven’t been paid at least the minimum wage, talk to your employer first to give them the chance to put this right.
If this doesn’t resolve your issue, contact the Advisory, Conciliation and Arbitration Service (ACAS) service, which is an independent UK government body, to discuss your next options. You can contact ACAS on their pay and work rights helpline on 0300 123 1100.
Your last resort is to take your employer to a tribunal – but seek advice from ACAS or Citizens Advice on this first, so you can be aware of the costs involved. You could also choose to report your employer to HMRC, who will then decide whether to investigate. If your employer is found to have not paid you the minimum wage, they can be fined by HMRC.
HMRC can take them to court on behalf of the worker if the employer still refuses to pay. ACAS guidelines state you can either take your employer to a tribunal yourself, or complain to HMRC. It says on the ACAS website: “You cannot take the same issue through two legal processes.”
If there was one underpayment or non-payment, you have three months minus one day from the date you should have been paid to make a claim to an employment tribunal. If there were several wrong underpayments or non-payments in a row, you have three months minus one day from the most recent wrong deduction.
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