Martin Lewis issues warning for anyone on minimum wage who could be owed £100s in cash – how to check

MARTIN Lewis has issued a warning for anyone in a minimum wage role who could be owed £100s in cash.

It comes as new figures show that over 330,000 earning the minimum wage were still underpaid last year.

Martin Lewis has issued a huge warning for workers on minimum wageRex

The founder of MoneySavingExpert.com said: “Annual figures from the Low Pay Commission reveal in 2022, yet again, over 330,000 people on minimum wage were still underpaid, and many still will be missing out on £100s.

“So I want to take you through what to check…”

Martin Lewis said that some staff might be underpaid if they have to buy things to do their job including tools and safety clothing, or if they have unpaid working time such as arriving early to open up.

He said: “If you must buy them, the cost shouldn’t take you below the equivalent minimum wage. This is the most common failing.”

Another way the financial experts warned workers could not be getting their rightful pay is if they’re not being paid for all of their working time.

Martin said: “This includes overtime, security checks, handover meetings, opening up, being on call and more.

“So if you get less than minimum wage once these are factored in, you’re owed.”

Another thing to watch out for is if your employer pays for accommodation, it can reduce your pay but only by a certain amount.

He said: “Pay can only be reduced by a maximum £63.70 a week below minimum wage if your employer provides accommodation.

“This includes charges such as rent, gas, electricity, furniture and laundry.”

We’ve explained exactly what you need to do if you’ve discovered that you’re underpaid.

What should I do if I’ve been underpaid?

Firstly, you could choose to have a 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.

You can also make a formal complaint at your company – check how to do this with the HR department.

If talking to your boss doesn’t resolve the issue, you could ask HRMC to investigate.

This can be done by anonymously reporting the company to HMRC online.

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 finds that your employer has not paid the correct minimum wage.

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.

HMRC could also fine your employer or take it to court if it refuses to pay out.

However, it’s worth noting that these investigations can take several months.

How much is the current minimum wage?

The National Minimum Wage (NMW) is the minimum pay per hour for workers under the age of 23.

Those aged 21-22 must earn at least £10.18 an hour and for 18 to 20-year-olds, the minimum wage is £7.49 an hour.

Meanwhile, the National Living Wage is the minimum wage for those over 23, and is slightly higher at £10.42 an hour.

Apprentices and under-18s should also expect to earn £5.28 an hour.

The rates even apply if you’re not paid annually.

So if you’re 25 and work 35 hours a week you should be expected to earn a minimum of £18,964 a year.

   

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