Millions of workers are set to see a boost in their wages from this week. The minimum wage is rising by 6.7%, which, according to government estimates, could result in an additional £1,400 per annum for a full-time worker on the minimum wage.
However, the exact earnings from the increase will depend on the number of hours worked. For example, once the increase is implemented, a person aged 21 and over will earn £12.21 per hour, while someone aged 18 to 20 will earn £10 per hour.
Deputy PM has previously emphasised the government's commitment to the wage rise, saying: "A proper day's work deserves a proper day's pay. Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18-20-year-olds on record."
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For those aged 21 and over, the minimum wage is referred to as the National Living Wage, while those under 21 receive the National Minimum Wage. Certain individuals, such as self-employed people, volunteers and company directors, are not subject to minimum wage regulations.
Some companies opt to pay the Real Living Wage, a voluntary rate that takes into account living costs and is higher than the statutory minimum wage. To be eligible, you must be over 18 and your employer needs to be part of the Real Living Wage scheme.
By law, you're entitled to at least the minimum wage. If you think you're not getting this, start by checking your payslips.
GOV.UK provides a minimum wage calculator to help figure out if you've been short-changed. If it appears you're not earning at least the minimum wage, approach your employer first to sort out the issue.
If this doesn't fix the problem, get in touch with the Advisory, Conciliation and Arbitration Service (ACAS), an independent UK government body, to explore further options. ACAS can be contacted via their pay and work rights helpline on 0300 123 1100.
If you find yourself in a situation where escalating the issue is necessary, taking your employer to a tribunal should be seen as a last resort. Before taking such a serious step, it's crucial to seek proper advice, with organisations like ACAS or Citizens Advice available to help you understand potential costs.
Furthermore, if there's suspicion that your employer hasn't paid the minimum wage, you have the right to report them to HMRC, who will decide if an investigation is needed. Should HMRC conclude that your employer has underpaid, they could impose fines.
HMRC has the authority to take your employer to court if they consistently ignore payment rules. ACAS guidelines offer two courses of action: you can either take matters into your own hands and pursue a tribunal claim or report the issue to HMRC.
However, the ACAS website cautions: "You cannot take the same issue through two legal processes."
For single instances of non-payment or underpayment, a claim must be submitted to an employment tribunal within three months minus one day from the payment's due date. For ongoing non-payments or underpayments, the timeframe begins from the most recent missed payment, following the same three-months-minus-one-day deadline.
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