National Minimum Wage entitlement

Anyone who is employed as an employee or worker must get the National Minimum Wage or National Living Wage.

This is whether they are:

• full time
• part time
• doing training essential for the job
• working in a small or ‘start-up’ business

It also applies to:

• agency workers
• agricultural workers
• apprentices
• casual labourers, for example someone hired for one day
• casual workers
• employees on probation
• foreign workers
• home workers
• offshore workers
• seafarers
• workers paid by commission
• workers paid by the number of items made (piece work)
• zero-hours workers

The only types of work that are not covered are those who are:

• self-employed (by choice)
• a volunteer (by choice)
• a company director
• in the armed forces
• doing work experience as part of a course
• work shadowing
• under school leaving age

2. If you live in your employer's home

You're entitled to the correct minimum wage if you live in your employer's home, unless:

• you're a member of their family
• you're not a family member but share work and leisure activities and are not charged for meals or accommodation, for example an au pair

There are times when employees or workers will be entitled to a higher minimum wage rate, for example:

• if the government increases the rates (usually in April each year)
• if an employee or worker turns 18, 21 or 23
• if an apprentice turns 19, or finishes the first year of their current apprenticeship

The higher rate starts to apply from the next 'pay reference period' after the increase. This means someone's pay might not go up straight away.

3. Pay reference period

The ‘pay reference period’ is the period of time the pay covers. For example:

• if paid daily, the pay reference period is 1 day
• if paid weekly, the pay reference period is 1 week
• if paid monthly, the pay reference period is 1 month

The pay reference period cannot be longer than a month.

Use the National Minimum Wage and National Living Wage calculator on GOV.UK to check if:

• you're getting paid the National Minimum Wage or National Living Wage
• you've been paid correctly in previous years

On average, you must get the minimum wage for each 'pay reference period' (the period of time your pay covers).

You work out your average hourly rate using:

• your total ('gross') pay each time you're paid
• how many hours you worked for that pay

What does not count towards the minimum wage

Some parts of your pay do not count towards minimum wage. These parts include:

• tips and gratuities
• premium payments (for example, extra pay for working bank holidays or overtime)
• a loan from your employer
• a pay advance

Commission

Commission counts towards minimum wage.

Your total pay including commission must give you the minimum wage each time you're paid.

Your employer must 'top up' your pay if you have not made enough commission to earn the minimum wage.

What can be deducted from the minimum wage

Your employer is allowed to make some deductions that could leave you with less than the National Minimum Wage or National Living Wage in your take-home pay. This includes:

• tax and National Insurance contributions
• paying back an advance or overpayment
• pension contributions
• trade union fees
• a charge for accommodation provided by your employer (see accommodation rate information on GOV.UK)

What cannot be deducted from the minimum wage

Some pay deductions and work-related expenses cannot reduce your pay below the minimum wage.

These include:

• tools
• uniforms
• travel costs (except getting to and from work)
• training courses

For example, you might be required to buy a uniform for work. This is allowed as long as your total pay minus the uniform cost is still above the minimum wage.

For more detailed information about what can and cannot be deducted, see calculating the minimum wage on GOV.UK.

If you're not getting paid the correct National Minimum Wage or National Living Wage rate you can try resolving the issue with your employer.

If you cannot resolve with your employer, you could either:

• report to HMRC to investigate
• make a claim to an employment tribunal

5. Resolving directly with your employer

If you are not getting paid the minimum wage, you can try raising the issue with your employer. If there has been a mistake, an informal chat can be the quickest way to resolve it.

It can help if you:

• show a copy of any calculations from the National Minimum Wage and Living Wage calculator on GOV.UK
• show other evidence, for example a copy of your payslips or employment contract
• say what you'd like to happen to resolve the issue

If a minimum wage issue cannot be resolved informally, you can make a formal complaint to your employer. This is called 'raising a grievance'.

If you are not able to resolve the issue with your employer and feel you need to take things further, you can speak to an Acas helpline adviser who will explain possible next steps and the risks and benefits of each.

Acas advisers cannot tell you what to do, give legal advice or do calculations for you, for example calculate the National Minimum Wage.

Reporting to HMRC to investigate

If you have not been paid the minimum wage you are entitled to, you can make a complaint to HMRC (HM Revenue & Customs).

Complaints to HMRC can be anonymous.

HMRC has the power to investigate complaints about minimum wage, and can issue a notice for money owed to you. They can also fine employers and take them to court if they refuse to pay.

To report a complaint to HMRC, use the pay and work rights complaints form on GOV.UK.

Making a claim to an employment tribunal

If you believe you have not been paid the minimum wage, you might be able to make a claim to an employment tribunal.

If you make a claim, your most recent National Minimum Wage or National Living Wage underpayment needs to be within 3 months of the day you start your claim.

If you've been treated unfairly because of minimum wage

Your employer should not dismiss you or treat you unfairly (cause you 'detriment') if you:

• become entitled to a higher rate of the minimum wage
• assert your right to minimum wage
• make a complaint to HMRC

Detriment means unfair treatment that leaves you worse off, for example:

• reducing your hours
• overlooking you for promotions or development opportunities
• saying no to your training requests without good reason

If you feel you've experienced detriment or been dismissed because of minimum wage entitlement, you might be able to make a claim to an employment tribunal.

It's against the law to pay below the National Minimum Wage or National Living Wage or to falsify pay records.

6. Investigation by HMRC

Anyone can report an employer to HMRC (HM Revenue & Customs) for not paying the minimum wage. The initial report can be anonymous.

If HMRC finds that an employer has not paid at least the minimum wage, they can send a notice of arrears plus issue a penalty for not paying the correct rate of pay.

HMRC can also take employers to civil court for not paying the National Minimum Wage or National Living Wage. The maximum fine for non-payment is £20,000 per worker. Employers who fail to pay can be named publicly and banned from being a company director for up to 15 years.

Taken to tribunal or court

Employers can be taken to an employment tribunal or civil court if an employee or worker feels they have: 

• not been receiving the National Minimum Wage or National Living Wage
• been dismissed or experienced unfair treatment (‘detriment’) because of their right to the National Minimum Wage or National Living Wage
• been discriminated against because their age means they are entitled to a higher minimum wage rate