FAQs
Workers
Check whether any of these common minimum wage payment mistakes could apply to you and make sure you’re not missing out.
Are tips counted as part of National Living or Minimum Wage?
If you receive tips at work, they cannot legally count towards your National Living Wage or National Minimum Wage rate. If tips are counted as part of your pay and you rely on them to bring your pay up to the National Living or Minimum Wage pay rate, then you could be underpaid and not receiving the wages you are legally owed.
Think you might be being underpaid? Your employer could owe you back pay. Report this to HMRC or call the Acas helpline for confidential advice.
Is my employer allowed to deduct the cost of work wear or tools from my wages?
If your employer has deducted from your wages, or you’ve had to pay for the cost of items connected with your job, then you may have been underpaid. Examples include uniform, items of clothing to meet a required dress code, safety clothing or tools. Deductions or payments for items connected with the job must not take you below the National Living Wage or National Minimum Wage rates for any given pay period.
Think you might be underpaid? Your employer could owe you back pay. Report this to HMRC or call the Acas helpline for confidential advice.
Should I get paid for travel while I’m working?
Time spent travelling between different assignments whilst at work is time spent working. You should be paid at least the National Living Wage or National Minimum Wage for this travelling time.
Think you might be underpaid? Your employer could owe you back pay.
Report this to HMRC or call the Acas helpline for confidential advice.
I often start early, or leave late, should I be paid for this time?
Additional working time added on to a worker’s shift – either before the start or after it ends – should be paid at National Living Wage or National Minimum Wage at least. Examples include time spent passing through security checks, attending handover meetings between shifts or helping to open up shop before trading begins.
Think you might be underpaid? Your employer could owe you back pay.
Report this to HMRC or call the Acas helpline for confidential advice.
I often start early, or leave late, should I be paid for this time?
Additional working time added on to a worker’s shift – either before the start or after it ends – should be paid at National Living Wage or National Minimum Wage at least. Examples include time spent passing through security checks, attending handover meetings between shifts or helping to open up shop before trading begins.
Think you might be underpaid? Your employer could owe you back pay. Report this to HMRC or call the Acas helpline for confidential advice.
It was my birthday recently, should my employer increase my pay based on my age?
Your age affects the pay rate you should receive on the National Living Wage or National Minimum Wage. If your employer didn’t review your pay on either your 18th, 21st, or previously 23rd or 25th birthday and was slow to make any increases, you might not have got all the pay that you’re owed.
Think you might be underpaid? Your employer could owe you back pay. Report this to HMRC or call the Acas helpline for confidential advice.
Is there a helpline I can speak to for further advice?
Yes, Acas (Advisory, Conciliation and Arbitration Service) provides free, confidential and impartial advice to employers and workers on all aspects of workplace relations and employment law. The Acas helpline has a free translation service for over 100 languages and can be called on 0300 123 1100.
You can ask Acas about:
- Employment rights and responsibilities
- Pay and the National Minimum Wage and National Living Wage
What can I expect when I report to HMRC?
You can report your employer if they are underpaying you. HMRC may contact you for further details as needed. HMRC considers every complaint it receives. An enforcement officer will look into the pay of all staff at the location, not just yours. If you wish to remain anonymous from your employer, HMRC do not need to reveal who made the complaint. HMRC will keep you updated on progress and, if you are owed any money, HMRC will tell your employer to pay this directly to you. HMRC will not close the case until the arrears have been paid to you.
What happens if HMRC investigates my employer?
If HMRC investigates your employer and concludes that the National Living Wage or National Minimum Wage has not been paid correctly to a worker or group of workers, it will issue a Notice of Underpayment to that employer which sets out the arrears to be paid to the workers together with a penalty imposed on the employer. The employer may also be publicly named.
Arrears paid to workers can go back a number of years, are paid at the higher current National Living or Minimum Wage rates, and your employer will have to pay the correct pay rates going forward.
HMRC will keep you updated on progress of any investigation.
When HMRC investigates an individual worker complaint, it is often the case that other workers in the same or similar situation end up being paid arrears too.
Do I still need to be working for the employer to report them to HMRC?
No. You don’t still have to be working for the employer in question to report to HMRC. HMRC investigations can go back six years.
Will my employer find out who complained to HMRC?
If you report to HMRC and wish to remain anonymous, HMRC can hide your identity from an employer during an investigation.
I live in my employer’s home, what am I owed?
You should receive at least the National Living Wage or National Minimum Wage rate for your age for the hours you work. The accommodation offset will apply. Your employer must provide you with a payslip. If you think you are not receiving the pay you are owed, you can contact HMRC.
Can I complain to HMRC on behalf of somebody else?
Yes. HMRC act on information from a range of sources, however those who report on the behalf of others will not be updated on the progress of any employer investigation.
I’m in my second year of apprenticeship and my employer still only pays me £5.28 per hour, is this correct?
If you’re aged 18 or under, then your employer is paying you the correct rate. If you’re 19 and over your employer must pay you the higher rate relevant to your age group.
My employer pays me the apprentice rate of £5.28 per hour but I don’t officially start my apprenticeship for another two months is this correct?
It is illegal for your employer to pay you the apprentice rate before or after your apprenticeship. You’re entitled to be paid the higher rate relevant to your age group.
Should I be paid for the time I spend training?
Time spent training is working time so you should be paid at least the National Minimum Wage for this time. It does not matter whether training takes place at work, college or elsewhere. The training can even be outside normal working hours.
Employers
Some of the most common mistakes are listed below. Check whether any of them could apply to your staff. If you discover you have been paying your workers below the correct minimum wage, you must pay any arrears immediately, including any back pay.
Are your workers’ tips counted as part of their pay?
If a worker receives tips at work, they cannot legally be counted towards their National Living Wage or National Minimum Wage entitlement, they must be paid on top. If tips are counted as part of their pay, and you rely on them to bring their pay up to the National Living or Minimum Wage, then you could be illegally underpaying your staff.
Further information and advice is available on the employers’ National Minimum Wage page, and through Acas by calling 0300 123 1100.
Are your workers being paid while travelling for work?
If your workers’ work involves travel between different assignments, and you don’t pay them for that time, you might be underpaying your staff.
Further information and advice is available on the employers’ National Minimum Wage page, and through Acas by calling 0300 123 1100.
Do you deduct the cost of work wear or tools from your workers’ wages?
If you have deducted your workers’ wages to cover the cost of items connected with their job such as uniform, a required dress code, safety clothing, or tools etc. then you may have been underpaying them. Deductions or payments made by workers for items connected with the job must not take a worker below the National Living or Minimum Wage for any given pay period.
Further information and advice is available on the employers’ National Minimum Wage page, and through Acas by calling 0300 123 1100.
Do your workers often start early or leave late and are not paid for this time?
If you require your workers to work any additional time added onto their shift, before the start or after it ends, but don’t pay for this time, you could be illegally underpaying them.
Examples include time spent passing through security checks, attending handover meetings between shifts, or helping to open up shop before trading begins. If you do this regularly, this unpaid time can quickly add up and you might find that you are failing to pay the National Living or Minimum Wage.
Further information and advice is available on the employers’ National Minimum Wage page, and through Acas by calling 0300 123 1100.
Do you employ apprentices?
The apprentice National Minimum Wage rate applies to genuine apprentices only, those employed on a recognised apprenticeship scheme or engaged under a contract of apprenticeship. Apprenticeships must incorporate structured training.
If an apprentice is aged 19 or over and has completed the first year of their apprenticeship, then they are legally entitled to at least the National Living or Minimum Wage relevant to their age group.
Apprentice training or study time is working time, so should be paid accordingly. It does not matter whether training takes place at home, work, college or elsewhere. The training can even be outside normal working hours.
Further information and advice is available on the employers’ National Minimum Wage page, and through Acas by calling 0300 123 1100.
Have any of your workers had a birthday recently that has increased their entitlement?
Age affects the rate a worker should be paid on the National Living or Minimum Wage. If you didn’t review your worker’s pay on their 18th, 21st or 23rd birthdays and were slow to make any adjustments, you may not have been paying them correctly.
Further information and advice is available on the employers’ National Minimum Wage page, and through Acas by calling 0300 123 1100.
When do I start paying the new National Living and Minimum Wage rates?
The new National Living and Minimum Wage rates will be introduced on 1 April 2024. Employers must start applying the new rates in the first pay reference period that starts on or after this date. Pay reference periods are usually set by how often someone is paid, for example one week or one month.
Further information and advice is available on the employers’ National Minimum Wage page, and through Acas by calling 0300 123 1100.
I employ a live-in worker, what do I need to do?
You need to pay your workers at least the National Living Wage or National Minimum Wage rate for their age for the hours they work. The accommodation offset will apply. You need to keep records to demonstrate that you are paying at least the minimum wage, including how many hours have been worked and how much has been paid in each pay period, and these must be kept for six years. You must provide your workers with a payslip.
Find out how to report this to HMRC.
This only takes 5 minutes, and you can anonymously report your employer, even if you no longer work for them. Your details will not be shared with your employer.