MARTIN Lewis has urged workers on minimum wage to check their payslips as they could be owed thousands of pounds.
Around half a million of those employees don’t realise they’ve been underpaid, but it’s easy to check.
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The personal finance guru said some staff might be owed cash if they have unpaid working times or have to buy things to do their job.
Martin shared the tip in the latest MoneySavingExpert newsletter on how to tackle the rising cost of living.
Energy costs, food shopping and tax bills are all rising and putting pressure on household finances.
On Friday the average gas and electricity bill jumped by £700 a year, and council tax and National Insurance are both increasing this week.
Most workers are eligible for the National Minimum Wage – known as the National Living Wage for people over 23 years old.
The amount you’ll get depends on your age, and the top tier amount for those 23 and over rose to £9.50 an hour last week – up from £8.91.
It’s illegal to pay eligible workers less than the minimum wage, but it is possible that you could be underpaid.
For example, unpaid working time could cause your hourly rate to drop below the minimum level.
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That could include overtime, training time or being asked to arrive early.
Your boss might not raise your salary when the rates go up every April or if you move into a higher wage bracket as you get older.
If you have to buy things to do your job, such as uniform, the cost of those items shouldn’t bring your pay below minimum wage.
You can use the government’s National Living Wage calculator to check you’re getting the correct amount.
What should I do if I’ve been underpaid?
There are two approaches you can take if you think your boss is failing to pay you the minimum wage.
You could anonymously report 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 letting HMRC contact you as it might need more information to move your claim forwards.
The tax office will launch an investigation if it has enough information and will take action if you’ve been underpaid.
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.
These investigations can take several months, so it’s not the quickest option to get the money you’re owed.
The other option is to have an informal 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.
If an informal chat doesn’t work you can make a formal complaint – check how to do this with your company’s HR department.
Following that, your final option is to take the company to an employment tribunal.
You can find out more about how to do this on the MoneySavingExpert website or by checking with Citizens Advice.
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