Earnings: Minimum wage
EarningsUnderstand the difference between the National Minimum Wage and Living Wage, what deductions employers can make and how to check your pay.
Transcript
If you’re looking for a new job, always pay close attention to the pay details. For example, if the job provides an hourly rate, check whether it is equal to or above the minimum wage. This helps you know that you are being paid fairly. The National Minimum Wage is the lowest hourly rate of pay that employers are legally required to pay. The exact rate depends on your age or whether you’re an apprentice. These figures are updated regularly on the official gov.uk website.
It is against the law for an employer to pay you less than this amount for the hours you work. It’s your employer’s responsibility to make sure you are paid at least the minimum wage, but it’s also important that you check. Your boss can take money out of your wages for certain things like uniforms, but they must make sure that after the deduction, you’re still earning at least the National Minimum Wage. Some deductions don’t count towards this rule, meaning they can take you below minimum wage and it’s still allowed. These include things like tax and national insurance, student loan repayments, money you’ve chosen to put into a pension, paying back wages you were overpaid by mistake. In short, your employers can’t cut your wages below minimum wage for their own costs like uniforms, but they can for legal deductions like tax, pensions or repaying an overpayment.
Alongside the minimum wage, there is also the Living Wage. This is a higher rate of pay that some employers choose to offer. It’s based on the actual cost of living, so it’s intended to give workers enough to meet everyday needs. In London, where living costs are higher, the Living Wage rate is also set higher than in the rest of the UK. When you’re considering a job, it’s worth checking whether the employer pays the Living Wage. This can help you decide if the role will support your needs and lifestyle.
If you notice that your pay is incorrect or below the legal minimum, raise the issue with your employer straightaway. If it isn’t resolved, there are organisations that offer free and confidential support. To keep yourself in control, make it a habit to check the current minimum wage rates on the gov.uk website, review your payslip regularly and speak up if something doesn’t look right. Knowing your rights helps you make better decisions about your work and your money.
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