What should I do if I am being paid below minimum wage?

9 April 2026

The much-talked-about topic of the National Minimum Wage (NMW) and National Living Wage (NLW) going up has finally arrived and you need to be sure that your employer is paying you correctly.

When you get to the end of the month, it’s time to check that the money that goes into your bank account is correct.

If you realise your pay does not look right and has not been updated with the new rates, you have the legal right to raise your concerns.

What are the changes to employee wages?

Since 1 April 2026, the NMW and NLW have increased to:

Your employer has a responsibility to update their payroll systems and pay their employees correctly with the new rate if they want to remain compliant.

However, that doesn’t mean mistakes cannot be made.

Whenever new legislation and rules come into effect, it takes some time to adjust, but that does not mean your income should take the hit for it.

Check that your pay is correct

If you are feeling concerned that the number at the bottom of your payslip has not updated, it’s time to get the calculator out and confirm your hourly rate for that month.

Hourly workers might find this a bit more straightforward, but salaried workers may struggle and need to double-check that no underpayment has slipped through the cracks unnoticed.

To calculate your hourly rate, you must divide your annual salary by the number of pay periods (usually 12 if you are paid monthly) and then divide that figure by the number of hours you work.

Full-time work usually involves working around 35-40 hours a week, so this means an annual salary on NLW should be between £23,132.20 and £26,436.80.

Even if you presume your employer will update their payroll to keep in line with the new legislation, you should always check.

How do I raise my concerns with my employer?

We know that the topic of money is sometimes uncomfortable to raise, but you need to make sure your concerns are heard.

You should present your employer with your calculations and evidence from your payslip and they should investigate the matter and correct any underpayments.

More often than not, employers will recognise their mistake and genuinely want to resolve it, but this is not always guarantee and a pay dispute may occur.

What should I do if I need to raise a pay dispute?

If you find that your concerns have not been taken seriously or your employer refuses to act, you are not without options.

You should start by reporting the issue to HMRC and they will investigate your employer and require them to repay any underpaid wages.

They might even impose penalties of up to 200 per cent of the unpaid wages and this is capped at £20,000 per employee.

If they repay you for your missing wages within 14 days, then this penalty may be reduced by 50 per cent.

HMRC may also choose to take legal action on your behalf, or you can bring a claim to an Employment Tribunal yourself.

We want you to know that you have the law on your side when asserting your right to fair pay.

You cannot be dismissed or treated unfairly for asking to be paid the correct minimum wage and you may have grounds for an unfair dismissal claim.

How can we support your pay dispute?

The Office for National Statistics estimated that 447,000 jobs were paid below the National Living Wage and National Minimum Wage in 2025.

Times are tough right now and wallets are being stretched, so you need to make sure you get what you have truly earned and protect your interests.

Our professional team is here to advise you on what to do if you are being paid below minimum wage and how to raise a formal complaint or claim.

If you need advice or support on your rights to pay, get in touch.