HMRC has urged people on minimum wage to check and see if they are getting paid the right amount after the rates went up last month.
On April 1 2023, minimum wage in the UK rose by 92p from £9.50 to £10.42 an hour and this is the legal minimum an employer can pay anyone working in the UK.
The Government said the increase would put an extra £1,600 into the pockets of around 2.9million of the lowest paid workers before tax.
HMRC however has issued a warning and has urged people to check their wage slips to see if they have received the increase.
Minimum wage applies to all companies and businesses both large and small and it is illegal for a business to pay its staff less than the minimum wage.
In a tweet, the tax authority said: "Is your employer paying you the correct National Living or Minimum Wage rate?
"Make sure you get the wages you're entitled to. You’ve earned it, make sure you’re getting it Check that you’ve been paid the correct amount by your employer."
The tweet also contained a link to the dedicated pages on GOV.UK for the National Living Wage and National Minimum Wage.
How to report to HMRC if you’re not paid correctly
If you believe you are not being paid the right amount then you can check using the Government's national minimum wage and living wage calculator - this will check what you should be getting paid.
HMRC recommends you speak to your employer first - this can usually help resolve the issue if it is a mistake.
If this doesn't help resolve it, then you can make a formal complaint anonymously through HMRC.
It only takes a few minutes to make the complaint and you can report your employer even if you no longer work for them - your details will not be shared with your employer.
The tax office will then open an investigation, and if it finds your employer has not paid the correct minimum wage, it can:
- Make your employer pay you back the amount they've underpaid you going back six years - anyone else affected in your company will also be refunded
- Issue a fine against your employer for not paying you the right amount
- Take your employer to court if it refuses to pay
However, you should be aware that an investigation by HMRC will take time so it may be quicker if you go directly to your employer.
You can also call the ACAS helpline which can give you general advice and support, and explain the risks and benefits of going forward with the complaint - in particular, ACAS can provide support if you think you think you're being treated unfairly as a result of your complaint.
If you're a member of a trade union, you can also get in touch with it for support.
You can make a complaint for someone other than yourself.
You should also be aware that other factors can affect how much you get paid this includes whether your employer provides you with accommodation.
Minimum wage hourly rates
23 and over - £10.42
21 to 22 - £10.18
18 to 20 - £7.49
Under 18 - £5.28
Apprentice - £5.28
Full details about national living and minimum wage on GOV.uk here.
