HM Revenue and Customs (HMRC) is urging workers to make sure they receive at least the National Minimum Wage or National Living Wage this Christmas.
Temporary seasonal staff, people on short-term contracts and students employed over the Christmas period are legally entitled to the same minimum pay rates as other workers, it said in a statement.
People should check their hourly wage and look out for other things that can lead to underpayment. These include unpaid working time, such as starting early or staying late to open and close premises, cleaning or completing mandatory training outside of working hours, and making sure they are paid properly for extra shifts covered.
HMRC also said that if employers deduct money for things like uniforms or equipment and this takes a worker’s pay below the minimum wage, this is not acceptable and should be reported.
In 2024 to 2025 HMRC identified wage arrears of £5.8 million due to 25,200 underpaid UK workers and issued around 750 penalties totalling £4.2 million to non-compliant employers.
The National Minimum Wage hourly rates are currently:
- £12.21 – Age 21 and over (National Living Wage)
- £10.00 – Age 18 to 20
- £7.55 – Age under 18
- £7.55 – Apprentice (aged under 19 / aged 19 or over and in the first year of their apprenticeship)
Kevin Hubbard, HMRC Director Individuals and Small Business Compliance, said: “We want to make sure that workers are paid correctly this Christmas. People should check their hourly rate and look out for any deductions or unpaid working time, which could take them below the minimum wage.
“Always make sure that you check your pay. If you think you have been short changed, even if you no longer work for the employer, we are here to help.”
Responding to the announcement, Kate Underwood, Founder at Southampton-based Kate Underwood HR and Training, said: “If your payroll’s playing Grinch, HMRC will play judge, jury and invoice. My advice to workers this Christmas is check your age-band minimum wage rate, check your hours and check for any deductions.
“Unpaid trial shifts, “mandatory training”, uniform costs, till shortages, travel between sites and accommodation charges can all drag you below the legal rate.
“Keep rotas, clock-ins and payslips. If it’s wrong, raise it in writing. HMRC’s warning is a good idea as seasonal staff are exactly the kind of people who get short-changed because they’re new, busy and often scared of being dropped. The law doesn’t do ‘it’s only temp’.
“My message to businesses paying below minimum wage is simple: stop calling it an admin error. Wage underpayments are one of the fastest ways to end up in a tribunal. Don’t be that employer this year. Do a wage check now and fix it before HMRC does.”
Photo by Markus Winkler on Unsplash
