Underpaid Minimum Wage? You Might Be Owed More Than You Think

Minimum-wage underpayment can hide in an incorrect rate, working hours that are not counted, or deductions for work-related items. If you have also been made redundant, check the weekly-pay figure separately: an underpayment in the relevant reference period may affect statutory redundancy pay, but correcting historic wages does not automatically change every redundancy calculation.

Rates from 1 April 2026

The National Living Wage for age 21 and over is £12.71 per hour. The 18–20 rate is £10.85; the 16–17 and apprentice rates are £8.00. The apprentice rate applies to apprentices under 19, or aged 19 or over in their first year; after the first year, those aged 19+ generally qualify for their age rate. When your age band changes, the higher rate applies from the first pay reference period beginning on or after your birthday, not necessarily the birthday itself. Check historical rates for earlier periods.

Count pay, time and deductions carefully

Working time for minimum-wage purposes can include required preparation, mandatory training and certain travel between jobs, depending on work type and circumstances. Not every minute on call at home counts; check the specific rules. Tips and service charges cannot make up the minimum wage. Some bonus payments can count as minimum-wage pay depending on their nature and pay period, so do not exclude all discretionary bonuses automatically. Uniform or other work-related costs, certain deductions and salary sacrifice can reduce pay for minimum-wage purposes; accommodation has special rules. The accommodation offset from April 2026 is £11.10 per day, not a universal top-up or automatic deduction.

Audit a pay reference period

  1. Identify the pay reference period and the rate that applied to you then.
  2. List hours counted as working time for minimum-wage purposes, including required work outside the roster.
  3. Identify pay that counts for minimum wage; account for excluded payments, relevant deductions and expenses under the rules. Gross pay before tax divided by hours is only a preliminary check, not a definitive legal calculation.
  4. Compare the effective rate and keep payslips, rotas and notes for several periods.
  5. Ask payroll to explain and correct any shortfall, or report suspected underpayment to the government.

Reporting and redundancy

The official minimum-wage complaint route lets you report suspected underpayment without first making a workplace complaint; it can be used after leaving. The Fair Work Agency began operating on 7 April 2026 and is responsible for minimum-wage enforcement. Investigation, back pay, penalties or naming are not automatic; HMRC's minimum-wage arrears guidance explains that arrears may be revalued using the current rate. Keep in mind separate tribunal time limits if considering a claim. You may be asked for information during an investigation, so do not assume you will have no further involvement.

For redundancy, check whether you qualify as an employee with sufficient continuous service; variable weekly pay is normally assessed over a 12-week reference period and the Great Britain statutory cap for relevant dismissals from 6 April 2026 is £751. Northern Ireland has a different cap. Ask for a written recalculation if an underpayment affected the relevant pay; seek independent advice promptly about claims and deadlines.

Explore: https://myredundancyrights.co.uk/calculator

Official sources: GOV.UK minimum wage rates; GOV.UK calculating minimum wage; GOV.UK minimum wage accommodation; GOV.UK enforcement and arrears; GOV.UK Fair Work Agency; Acas redundancy pay. General information only.