National Minimum Wage increases by 9.7%: are you being underpaid?

The National Minimum Wage increased by 9.7% for 2023-24, meaning thousands of workers should receive a pay rise this year.  

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to, but what you get can depend on your age and whether or not your role is an apprenticeship.

Here, we shed light on several of the most frequently asked questions about how it works and what steps to take if you think you’re being underpaid.

What is the National Minimum Wage?

It was introduced in 1998 via the The National Minimum Wage Act to ensure a minimum level of pay for virtually all workers. 

You have to be school leaving age (usually 16) to get it, but payment levels vary.

The table below shows this year's and last year's rates for all ages, and levels for apprentices:

HMRC says all workers should receive the level that applies to them, including those working part-time, casual labourers, agency workers, trainees, workers on probation, disabled workers and foreign workers, to name a few.

Apprentices over the age of 19 who have completed the first year of their apprenticeship are entitled to the correct National Minimum Wage for their age, otherwise they will receive the lower apprentice rates.

There are a few instances where you won’t necessarily get it, including if you're self-employed, a voluntary worker, younger than school leaving age or on a work placement for up to one year. 

You can see a more extensive list of workers who are and aren't entitled on the government's website.

• Find out more: all our cost of living news and advice

What are the National Living Wage and Real Living Wage?

The National Living Wage is essentially just the name for the National Minimum Wage received by workers over the age of 23 – and it's higher than the minimum amount paid to those aged 22 or younger.

Then there's the Real Living Wage, which is something slightly different. This is for workers aged 18 and over, and employers can pay it on a voluntary basis – so it's not required by law. It's currently at £10.90 per hour across the UK and £11.95 per hour in London, and is higher than the National Living Wage.

The Real Living Wage is independently calculated according to the cost of living based on a selection of household goods and services, and it's set by the Living Wage Foundation. According to its website, more than 12,000 UK employers voluntarily pay this rate.

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How to find out if you're being underpaid

Employers in the UK are legally obliged to pay you at the least National Minimum Wage appropriate for your age; employment contracts with a salary below this aren't legally binding.

If you think you are being underpaid, talk to your employer about it first. But if that doesn’t resolve the issue, you can make a complaint through the government's website. Any complaints regarding the National Minimum Wage will be directed to HMRC. You can do this for yourself or on behalf of others.

You can also call the free Acas helpline for confidential advice on the matter. 

In addition, there are several scenarios where you may be missing out on money for your work.

For instance, if you get tips at your workplace, they can't legally count towards your National Minimum Wage rate. Plus, any additional working time added on to a work shift – before the start or after it ends – should also be paid at least the National Minimum Wage rate. 

If you're spending time and money travelling between different assignments during your working day, it should be classed as time spent working. You should therefore be paid at least the National Minimum Wage for this time.