Workers who were employed during the festive season have been encouraged to review their pay to make sure they have received either the National Minimum Wage or National Living Wage.
This includes seasonal workers and students on short term contracts who are working in various industries such as retail, hospitality and logistics like parcel delivery or warehouse work.
It is important to know that these workers are entitled to the same minimum wage rates as other employees.
The message comes from HM Revenue and Customs (HMRC) who are reminding all workers under PAYE to carefully examine their hourly rate of pay.
Vigilance is vital around instances of unpaid working time such as time spent working longer hours, attending training sessions or taking on additional shifts.
In the tax year of 2022 to 2023 HMRC identified a total of £13.7 million in wage arrears owed to over 108,000 workers in the UK who were not properly paid.
Marc Gill, HMRC’s Director Individuals and Small Business Compliance, said:
“We want to make sure that all workers, including seasonal staff and students, are being paid what they are due this festive period, which is why we are reminding everyone to check their pay.
People should check their hourly rate and look out for any deductions or unpaid working time. It could take them below the minimum wage.
HMRC looks into every minimum wage complaint, so if you think you are being short-changed you should get in touch. Don’t lose out – report it.”
What is the national minimum wage rate?
According to the law all workers must receive at least the minimum wage based on their age for all the time they spend working.
At the time of writing the national minimum wage rate are:
Under 18: £5.28
18 to 20: £7.49
21 to 22: £10.18
For ages of 23 and over the national living wage takes over from the minimum wage and is set at £10.42 per hour.
The national minimum and living wage structure and values change from the start of the 23/24 tax year which starts on 5 April 2024.
Some of the most common reasons for underpayment of the minimum wage are deductions and unpaid working time for example:
- Travel time between work locations that goes unpaid.
- Time spent in training that is not compensated.
- Expenses incurred because of your job like tools, equipment, uniform costs.
You can use the national minimum wage and living wage calculator to help you work out your figures.
How to report incorrect wage payments
HMRC is responsible for enforcing the legislation on National Minimum Wage. The Department for Business and Trade holds the responsibility for developing policies related to both the National Minimum Wage and the National Living Wage.
If you suspect that you or someone you know is not receiving the correct payment they are entitled to, it is important to take action.
Reporting payments issues online at GOV.UK is a simple process that only takes about 10 minutes and can still be done after the employment has ended.
If you prefer to speak with someone directly you can contact the Acas Pay and Work Rights helpline at 0300 123 1100.
The ACAS helpline offers confidential and free advice available Monday to Friday from 8am to 6pm.
Employers who violate the rules regarding the minimum wage can face penalties of up to 200% of the amount owed to workers.
