More than half a million people in the UK are being paid less than they’re legally entitled to. That’s not a small problem — it’s hundreds of thousands of workers missing out on money they’ve rightfully earned.
The frustrating part? Many people don’t even realise they’re being underpaid. While some employers do break the rules deliberately, most underpayments happen by accident due to confusion about what should be included in minimum wage calculations.
If you’ve ever wondered whether you’re getting what you’re owed, here’s everything you need to know about your rights.
What you’re entitled to
Most people aged 16 and over in the UK should receive at least the minimum wage. The rates change every April and increase as you get older:
- Apprentice minimum wage: For apprentices under 19, or those 19+ in their first year
- 16-17 years: Minimum wage rate
- 18-20 years: Minimum wage rate
- 21+ years: National Living Wage (the highest rate)
Current rates: Check gov.uk/minimum-wage-rates for the most up-to-date figures, as these change every April.
Key point: Even if you’re on a salary rather than hourly pay, your total pay should still work out to at least minimum wage when divided by your actual working hours.
What your pay should cover
This is where it gets tricky, and where many employers (accidentally or otherwise) get it wrong. Your minimum wage should cover:
All working time:
- Your normal contracted hours
- Any overtime you’ve worked
- Time spent in training or meetings
- Being “on call” if you can’t use that time freely
- Starting work early or finishing late
Travel time: If travelling is part of your job (like visiting clients), you should be paid for travel time between appointments — though not usually for your daily commute.
Things you have to buy: If your employer requires you to buy uniforms, tools, or anything else for work, this cost should be covered so it doesn’t take you below minimum wage.
Holiday pay: You’re entitled to paid holiday — usually 5.6 weeks per year for full-time workers (this can include bank holidays).
Red flags that suggest you might be underpaid
Quick checks:
- Does your total monthly pay ÷ total hours worked equal at least minimum wage?
- Are you paid for all overtime, training sessions, and meetings?
- Do you have to buy work equipment that isn’t reimbursed?
- Are you sometimes asked to start early or stay late without pay?
If any of these ring true, it’s worth investigating further.
What to do if you think you’re being underpaid
Step 1: Check your payslip carefully
Your payslip should show your hourly rate, total hours, any deductions, and how your pay was calculated. You have a legal right to receive a payslip that breaks down these details.
Use the government’s minimum wage calculator to check if you’re getting what you’re owed.
Step 2: Talk to your employer first
Most underpayments are genuine mistakes, so start with a conversation. Speak to your manager, HR, or payroll team with your evidence ready. Many employers will quickly fix genuine errors.
What to bring:
- Your payslips showing the discrepancy
- Records of hours worked (including overtime)
- Evidence of work-related expenses you’ve covered
Step 3: If talking doesn’t work
If your employer disputes your claim or won’t cooperate, you have two main options:
Contact ACAS: They offer free advice and can help resolve the dispute without going to court. Call them on 0300 123 1100.
Report to HMRC: You can make an anonymous complaint online. HMRC will investigate your employer and can force them to pay what’s owed, plus potential fines. However, this process can take several months.
Employment tribunal: For serious cases, you can take your employer to tribunal for “unlawful deduction of wages.”
Getting your money back
If you’ve been underpaid, you’re usually entitled to:
- All the money you’re owed going back up to 6 years
- Interest on late payments in some cases
Your employer will typically either pay you a lump sum or gradually increase your pay until the debt is cleared.
Know your worth
Understanding minimum wage rules isn’t just about the hourly rate — it’s about ensuring you’re paid fairly for all the time and effort you put into your job.
If something feels wrong with your pay, trust that instinct and look into it. You work hard for your money, and you deserve to get every penny you’re legally owed.
Need help with the numbers? ACAS offers free advice, and Citizens Advice can provide guidance on employment rights. Don’t be afraid to ask for help — hundreds of thousands of workers have successfully claimed money they were owed.
