What should I do if I’ve been paid below the new minimum wage rate?

We are over a month into the swing of things with the new National Minimum Wage (NMW) and National Living Wage (NLW) rates as they came into effect on 1 April 2026.

However, that does not mean every employer has caught up with the changes, even though they should have, and the number on your paycheck might not add up.

If you find that your employer has not updated your pay 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:

Employers are responsible for updating their payroll systems and paying their employees correctly with the new rate.

However, that doesn’t mean mistakes cannot be made and sometimes it can take time to adjust to new legislation and rules.

Although your pockets should not take the hit for these mistakes.

Check that your pay is correct

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

You need to get the calculator out and confirm your hourly rate for that month if you suspect your pay is incorrect.

This might be easier for hourly workers, 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 bring my concerns to my employer?

The topic of money can be 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.

They should then 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 guaranteed and a pay dispute may occur.

Raising a pay dispute

If you find that your concerns have not been taken seriously or your employer refuses to act, you should report the issue to HMRC.

They will investigate your employer and require them to repay any underpaid wages.

HMRC 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.

The law is 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 you?

Times are tough right now and you need to make sure you get what you have truly earned.

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.