Minimum wage is increasing, resulting in higher pay for millions of employees. The minimum wage is the lowest hourly rate mandated by law that employers must pay. It varies based on age brackets and is set to rise starting April 1.
For individuals over 21, the minimum wage will climb from £12.21 per hour to £12.71 per hour. This means that those working 40 hours weekly at minimum wage will see their annual income rise from £25,397 to £26,437, a boost of around £1,040.
Workers aged 18 to 20 will experience an increase from £10 to £10.85 per hour, while under-18s and apprentices will see their minimum wage jump from £7.55 to £8 per hour.
Many employers pay above the minimum wage, which serves as the legal baseline for both workers and employers. However, certain categories like self-employed individuals, volunteers, and company directors are not covered by minimum wage regulations.
Some companies adhere to the Real Living Wage, a voluntary pay rate based on the cost of living, exceeding the statutory minimum wage. The Real Living Wage is set to increase to £13.45 per hour outside London and £14.80 per hour inside London by May 2026.
If you suspect being underpaid, start by reviewing your payslip. If you believe you are not receiving the minimum wage, address the concern with your employer first. If the issue persists, seek assistance from the Advisory, Conciliation and Arbitration Service (ACAS), an independent UK government body.
As a last resort, consider taking legal action against your employer by seeking guidance from ACAS or Citizens Advice to understand the process and potential costs involved. Another option is to report the employer to HMRC, which may result in fines for non-compliance with minimum wage laws. HMRC can represent the worker in court if the employer fails to comply, as stated by ACAS guidelines. Remember that pursuing legal action and reporting to HMRC cannot be done simultaneously for the same issue.