42,000 workers left out of pocket: how to check if you’re being paid the right wage

Nearly 500 companies across the UK have been found to be underpaying staff and are now facing penalties.

This week, the Department for Business and Trade (DBT) named 491 employers who broke minimum wage laws. In total, they’ll pay £10.2m in fines, and thousands of workers are being compensated for lost earnings.

What happened?

The DBT revealed that around 42,000 workers were underpaid over several years, with many receiving less than the national minimum wage (NMW) or national living wage (NLW).

So far, £6m has already been repaid to affected staff.

Could you be affected? Here's what to do

If you think you may have been underpaid, you can check online. This tool helps you see if you’re getting the right wage for your age and job type.

Minimum wage versus living wage: what's the difference?

The NMW applies to workers under 21, including apprentices. The NLW is for workers aged 21 and over.

Current rates are:

National minimum wage

• under 18: £7.55/hour

• 18 to 20: £10.00/hour
• apprentices: £7.55/hour (if under 19 or in the first year of their apprenticeship)

National living wage

• 21 and over: £12.21/hour

Common ways you might be underpaid

Many people are underpaid without realising it. Here are some common reasons:

Unpaid working time

You must be paid for all hours worked, including:

• training
• travel (if part of your job)
• overtime
• time spent opening or closing a store

Pay deductions for job costs

If you have to buy tools, uniforms or equipment, these costs shouldn’t reduce your pay below minimum wage, even if bought from your employer.

Tips, commission or overtime used to ‘top up’ pay

Minimum wage must be paid before any tips, overtime or commission are added.

Commission-only jobs

Even if you work on commission, your earnings must meet or exceed the minimum wage. If they don’t, your employer must make up the difference.

Incorrect apprentice pay

If you're paid the apprentice rate but not receiving proper, structured training, you may be entitled to the full minimum wage for your age group.

Think you’ve been underpaid? Here's what to do

If you suspect you’ve been paid less than you should, take these steps:

• talk to your employer – if you feel comfortable, raise the issue directly
• contact Acas - you can ring the confidential Acas helpline for help solving a payment dispute.
• make a complaint to HMRC
• make a claim to an employment tribunal

To check if you’re being paid correctly, you can use the government’s national living wage calculator.

Or read our guide to find out what to do if you think you’ve been underpaid.