By Brad Young, Money Feature Writer
Major Changes on the Minimum Wage: What You Need to Know
Exciting news for full-time working adults! Thanks to a recent rise in the **minimum wage**, employees may find their annual income boosted by **£1,400 to £2,500** starting today. This increase aims to support individuals grappling with rising costs, yet it serves as a vivid reminder of the ongoing battle against wage theft.
New Minimum Wage Rates Explained
For those aged **21 and over**, the minimum wage has risen to **£12.21 per hour**, marking a £0.77 increase or a **6.7%** jump. Meanwhile, younger employees aged **18 to 20** will now earn **£10 per hour**, up a commendable **16.3%** from the previous £8.60.
However, amidst this positive shift lies a serious concern—as highlighted by the government’s crackdown last year when **524 companies** were named and shamed for failing to pay a staggering **£16 million** owed to **172,000 workers**. So, what are the common pitfalls that prevent wages from being deposited correctly into your account?
Wage Theft: The Hidden Costs of Employment
Many employees may underappreciate the factors contributing to *wage theft*. **Unpaid additional hours**, **travel time**, and even **mandatory training** can lead to significant wage adjustments that keep workers from receiving the pay they rightfully deserve. Additionally, various deductions might be impacting your paycheck:
- Meals
- Parking
- Travel costs
- Till shortages
- Uniforms
What To Do If You’re Not Being Paid Correctly
If you find yourself in a situation where your weekly or monthly pay doesn’t reflect the minimum wage, don’t panic. **Lucie Garvin** from the Advisory, Conciliation and Arbitration Service offers several practical steps to tackle this issue effectively.
Start with an Informal Chat
Begin by approaching your employer informally. Often, the problem can arise from a **genuine error**. A casual conversation might lead to immediate resolution. However, it’s crucial to be aware that the following benefits do NOT contribute to your salary:
- Tips and gratuities
- Company car
- Cycle-to-work schemes
- Fuel allowances
- Work phone benefits
Taking Formal Action
If the issue persists despite your informal efforts, it may be time for more formal action. You can file a **grievance complaint** with your employer. Garvin points out that while it may seem daunting, addressing concerns formally is a necessary step for many.
Seeking Help from HMRC or an Employment Tribunal
If you feel uncomfortable approaching your employer or your attempts have been unsuccessful, you have the option to escalate the issue by contacting **HMRC’s National Minimum Wage enforcement team** or making a claim to an **employment tribunal**. It’s important to note that you cannot pursue both avenues simultaneously, and strict time limits apply:
- Single payment issues: You have **three months minus one day** from the payment date to file a claim.
- Multiple payment issues: Similar time frame applies for the most recent incorrect deduction.
Important Tips to Remember
One common misconception many employees hold is that their pay automatically increases when they reach a birthday or at the beginning of a new pay period in April. **Garvin** warns against making this mistake, as wage increases take effect beginning the next **pay reference period** following the increase.
In conclusion, staying informed and proactive is essential in today’s job market. If you have concerns about your wages, don’t let fear hold you back. Reach out, gather information, and make sure you receive the fair compensation you deserve.
