Paid below minimum wage? You can claim back pay plus a 200% penalty.
The National Minimum Wage is a legal floor — your employer cannot pay below it, regardless of what your contract says. If they have, you are entitled to every penny of the shortfall, plus an additional penalty on top.
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Can my employer sack me for complaining about minimum wage?
No. Asserting your right to the NMW is a protected act. Dismissal or detriment for raising a NMW complaint is automatically unfair, with no qualifying period.
What if I’m on a salary — does NMW still apply?
Yes. Divide your total pay in the pay reference period by the hours worked. If the result is below the statutory minimum for your age, you’ve been underpaid. Salary structures don’t override the legal floor.
Do tips count towards minimum wage?
No. Since October 2023 under the Employment (Allocation of Tips) Act 2023, tips can’t be used to make up the NMW. Your base pay must hit the statutory minimum independently.
Can I claim for past underpayment if I’ve left the job?
Yes. Claim up to 3 months back via the Employment Tribunal (after ACAS conciliation), up to 6 years via the county court, and you can ask HMRC to investigate regardless of when you left.
What is the NMW penalty?
If HMRC finds underpayment, they issue a Notice of Underpayment requiring repayment plus a penalty of up to 200% of unpaid wages (minimum £100, maximum £20,000 per worker). The tribunal can also award 200% as an additional sum.
Paid below minimum wage? You can claim back pay plus a 200% penalty.
Last updated: April 2026
Current rates (April 2026 onwards)
| Age / Category | Rate per hour |
|---|---|
| 21 and over (National Living Wage) | £12.71 |
| 18–20 | £10.85 |
| 16–17 | £8.00 |
| Apprentice (under 19, or 19+ in first year) | £8.00 |
These rates apply to employees, workers, and most agency workers. Self-employed people are not covered.
Common ways employers underpay — often without admitting it
Tips and service charges counted as wages
Since 2023, employers cannot use tips or service charges to make up the National Minimum Wage. Every tip must be on top of the statutory rate.
Deductions that take pay below the minimum
Deductions for uniforms, tools, accommodation (above the statutory offset), or cash shortfalls can push effective hourly pay below the legal minimum.
Travel between sites, mandatory training, time spent waiting on premises, or time "on call" on-site all count as working time and must be paid.
Sleep-in shifts at care homes
Following a series of tribunal cases, many sleep-in workers are owed back pay if they were paid a flat allowance below the hourly minimum.
Salary sacrifice schemes
If a salary sacrifice arrangement takes your effective pay below the statutory minimum, the employer must top it up.
Misclassifying workers as self-employed
If you are effectively a worker (personal service, employer control, no substitution), minimum wage applies regardless of the contract label.
Think you've been underpaid?
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How to claim unpaid minimum wage
Calculate the shortfall
Work out how many hours you worked, what you were paid, and what you should have received at the applicable rate. The shortfall is what you are owed.
Raise a grievance with your employer
Put the underpayment in writing. Your employer has a legal obligation to pay the correct rate. A written grievance creates a paper trail and may resolve the issue without a tribunal.
HMRC enforces the NMW and can investigate your employer, issue a Notice of Underpayment, and force repayment. You can report anonymously. HMRC can look back up to 6 years.
Claim via the Employment Tribunal
You can also claim the shortfall as an unlawful wage deduction in the Employment Tribunal. You have 3 months from the last underpayment (after Acas Early Conciliation). Tribunal claims can include a penalty of up to 200% of the underpayment.
To bring an Employment Tribunal claim (from the last underpayment, extended by Acas Early Conciliation period)
HMRC can investigate historic underpayments going back 6 years
County court claim for unpaid wages (breach of contract)
Frequently asked questions
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