Whether you're on minimum wage, a zero-hours contract, or have had money wrongly deducted from your pay, this guide explains your pay rights, what the law guarantees, and exactly what to do if you're being underpaid.
In England, Wales and Scotland, claims for unlawful deduction from wages must be brought within 6 months less one day of the deduction (or the last one in a series) if it was on or after 1 October 2026; earlier deductions keep 3 months less one day. In Northern Ireland it is 3 months less one day. Series of deductions: you can claim up to 2 years back in England, Wales and Scotland.
The Fair Work Agency enforces the minimum wage. The penalty for minimum wage underpayment is 200% of the amount owed (at least £100, capped at £20,000 per worker). Its powers over holiday pay and SSP are not in force yet.
| Age group | Rate (from April 2026) |
|---|---|
| 21 and over (National Living Wage) | £12.71/hour |
| 18–20 | £10.85/hour |
| Under 18 | £8.00/hour |
| Apprentice (under 19, or 19+ in first year) | £8.00/hour |
Tips, bonuses and uniform deductions cannot reduce your NMW. If your take-home pay after any deductions falls below NMW, that is an underpayment.
SSP is £123.25/week, or 80% of your normal weekly earnings if that is lower, paid from your first day of sickness. There are no waiting days and no minimum earnings threshold. Your employer can pay more via contractual sick pay — check your contract.
5.6 weeks (28 days full-time) holiday is a legal entitlement. For irregular hours, holiday pay is 12.07% of hours worked. HMRC approved mileage rate for cars from 6 April 2026: 55p per mile for first 10,000 miles, 25p thereafter (increased from 45p — first change since 2011).
Employers must pass all tips to workers in full. No deductions except tax. Tips must be paid by end of the following month. A written tips policy is required. The Tipping Act does not apply in Northern Ireland.
Divide gross pay by hours worked. If below £12.71/hour (age 21+), you are being underpaid.
You're entitled to itemised payslips from day one. Keep copies.
Many pay errors are genuine mistakes. Speak to HR and note the response.
If informal resolution fails, write a grievance letter with dates and amounts. Keep a copy.
For the minimum wage: report at gov.uk. The Fair Work Agency can enforce it and apply 200% penalties.
For unlawful deduction from wages, contact ACAS for early conciliation. Time limits apply.
ACAS: 0300 123 1100 — free pay rights advice
Fair Work Agency: gov.uk — report minimum wage underpayments
HMRC NMW complaints: 0300 123 2671
Citizens Advice: 0800 144 8848
Further reading: our blog explains the Statutory Sick Pay changes from April 2026.
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