Underpayment of Wages

A Guide to know about Underpayment of Wages!

We all know that when we are into jobs, most of us are entitled to get the minimum national wage. Regardless of being the casual workers, agency workers, or the people who are working on zero-hour contracts. One must be aware of the underpayment of wages. There is also a higher rate of the minimum wage which is known as the national minimum wage. However, you are only entitled to national minimum wage if you are of age 23 or older than this.

Moreover, your employer is not bound to pay the national minimum wage or national living wage in case you are fired or your work is altered. If you do not agree, you have the right to challenge such a decision of your employer. If you are doubtful that the employer has altered your work or fired you to get the minimum wage. It is suggested to get professional advice and deal with the matter accordingly.


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Check If You Are Entitled To Minimum Wage

Following are the conditions, if any of them belongs to you, you are not entitled.

  • If you are under the age of 16.
  • If you are a prisoner.
  • If you belong to the armed forces.
  • If you are a farmworker.
  • Some of the trainees and interests are not eligible, however, this can be discussed with a professional.
  • You work as a nanny with a family and do not pay for your food and accommodation.
  • A self-employed individual. Be assured because some people confuse self-employment and workers. The workers are eligible to get the minimum wage. It is better to get professional advice on this.

In case you are still unsure if you belong to any of the above-mentioned categories, seek professional help to be clear.


National Minimum Wage Rates

Now that you know if you are entitled to minimum wage or not. You must be wondering about the national minimum wage. The following points are important in this regard:

  • If you are of age 23 or older, the hourly rate of the national minimum wage before tax is £9.50.
  • If you are of age 21-22, the hourly rate of the national minimum wage before tax is £9.18.
  • If you are of age 18-20, the hourly rate of the national minimum wage before tax is £6.83.
  • If you are of age 16-17, the hourly rate of the national minimum wage before tax is £4.81.

A national minimum wage calculator can be helpful to know the accurate amount of wage. In case of underpayment of wages, the calculator will let you know what exactly your employer owes you. You should definitely seek help if any of the following in your case:

  • The employer takes some amount from your wages for the sake of accommodation.
  • You are not being paid for the on-call time.
  • The time of training courses is not paid to you.
  • You are not paid for business travelling.


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Underpayment Of Wages

In case you figure out the underpayment of wages, it’s time to have a word with your employer. He is accountable to answer the difference between what he owes you and what he is actually paying.

This is suggested to have an informal talk with the employer to figure out what makes them think you are not entitled or you might be already getting the minimum wage.

Next, you can use the minimum wage calculator and print out the results to show your employer.

once the employer agrees on the genuine mistake, request to clear the payments that he owes you.

In certain cases, the employers try to convince the employee with the amount of the benefits like tips and free meals etc. In this situation, you must be focused on the minimum wage as this is your basic right to get it.


The Bottom Line

To sum up the discussion of Underpayment Of Wages, we can say that the first need is to understand the entitlement part and whether you are being paid fairly. This process can be a bit complicated. To ensure an error-free and seamless process, one should reach out to the professionals.

We hope these few minutes of reading helped to develop a better understanding and you will be able to make smart choices.


Speak to one of our qualified accountants? Give us a call on 02034411258 or request a callback. We are available from 9:00 am – 05:30 pm Monday to Friday.


Disclaimer: The information provided in this article about the Underpayment Of Wages including text, graphics, and images is general in nature and does not intend to disregard any professional advice.


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