What are the National Minimum Wage and National Living Wage?
The National Minimum Wage and National Living Wage are the minimum pay per hour you are entitled to by law. Your employer must pay you at least this amount – it is illegal to pay you less. The National Living Wage refers to the highest rate of minimum wage, this applies to workers aged 21 and over.
Could you be underpaid?
Even if your hourly rate of pay is being paid at or above the minimum wage, you could still be underpaid. This happens when your employer doesn’t pay you for all your working time or makes deductions from your pay that reduce it below the minimum wage.
Common causes of underpayment for care workers
Unpaid working time
All time you spend working must be paid. Working time includes:
– time spent completing mandatory training, whether at home or at work
– time worked before or after your shift
– time spent travelling between clients
– waiting at or near your place of work.
Examples:
Carol visits a client for one hour, then travels for 15 minutes to her next client where she spends another hour. Her total working time is two hours and 15 minutes – the two hours with clients plus 15 minutes travelling between them.
Sarah arrives at a client’s home at 9:15am but must wait outside until 9:30am due to insurance requirements. These 15 minutes count as working time because she is required to be there and ready to work.
Sarah’s client has a fall. She calls an ambulance and stays with them for one hour while waiting for the ambulance to arrive. This one hour counts as working time because she is required to be there.
Deductions and payments
Your employer can make certain deductions from your pay or require you to buy things for work, but these must not reduce your pay below the minimum wage. Examples of these include:
– uniform or clothing for work
– equipment needed for your job
– salary sacrifice schemes
– locker deposits
– name badges
– training costs
– deductions for food or drinks
-Disclosure and Barring Service (DBS) check costs – employers can only deduct up to the amount shown on GOV.UK. If they charge you more, this could mean you’re being paid below the National Minimum Wage.
– Accommodation costs – If your employer provides accommodation, they can only deduct up to the daily limit specified on GOV.UK – anything above this could reduce your pay below the National Minimum Wage
Incorrect minimum wage rates
Sometimes employers don’t increase pay in line with minimum wage rate changes or pay the wrong rate for a worker’s age. Rates change on 1 April each year. You can check the latest rates on GOV.UK .
If you’re an apprentice, check you’re on the correct rate. You should only be paid the apprentice rate if you’re under 19, or aged 19 or over and in the first year of your apprenticeship. Otherwise, you’re entitled to the minimum wage rate for your age.
What to do if you think you’re being underpaid
- Check your pay on GOV.UK to check if you’re being paid correctly
- Talk to your employer (if you feel able to). Try and resolve the issue with them directly.
- Report the underpayment to HM Revenue and Customs (HMRC).
If speaking to your employer doesn’t resolve the issue, or you don’t feel confident doing so, report your employer to HMRC using the online form on GOV.UK (this takes less than five minutes).
Or call the Acas helpline on 0300 123 1100 who can transfer you to HMRC (translation service available). The Acas helpline is open Monday to Friday, 8am to 6pm.
In Northern Ireland contact the Labour Relations Agency’s Workplace Information Service on 03300 555 300, open Monday to Friday, 9am to 5pm.
You have legal protection against dismissal for raising concerns about your pay.
HMRC will investigate on your behalf and look at all the workers within the business. You can report your employer even if you no longer work for them. If you want to remain anonymous, HMRC will not tell your employer you contacted them.
Remember
- You have the right to be paid correctly
- Help is available if you need it
- Your employer cannot dismiss you for asking about the minimum wage.
HMRC’s National Minimum Wage team is here to help make sure you’re paid correctly.