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June 4, 2023
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HMRC minimum wage probe reveals double the amount of number are underpaid

About 200,000 workers have together been underpaid greater than £15m causing £14m of fines for 600 employers caught inside HMRC crackdown on minimum wage shortfalls.

The range of workers recognized as underpaid was double that in 2016/17 and the highest number since the National Minimum Wage came into force.

In every case, the govt instructs employers to their workers and enforces the return in the missing cash.

The increase in cases follows increased efforts by HMRC in promoting compliance and improve employer knowing the minimum wage.

Business Minister Kelly Tolhurst said: “We’ve been specializing in stopping underpayment on the minimum wage. Employers must recognise their responsibilities and pay their workers the bucks they may be eligible for.

“The UK’s lowest paid workers had the easiest wage increase in 20 years because of the National Living Wage and today’s figures function as reminder to all or any employers to test there’re getting their workers’ pay right.”

Over days gone by year, 56 employers took benefit for a HMRC pilot scheme where employers were encouraged to come forward outside an analysis. This generated nearly £250,000 in arrears being declared for only under 700 workers.

The year also set the latest record for penalties issued by government entities, with £14 million in fines issued to employers.

More than 600 employers who was simply found to own underpaid their workers the minimum wage were named in 2017/18. It is the largest number in every single year because the scheme began in 2014.

This year, the social care, retail, commercial warehousing and gig economy sectors are prioritised by HMRC for enforcement on the minimum wage. This really is alongside employment agencies, apprentices and migrant workers. These sectors are where non-compliance with National Minimum Wage is believed to generally be more widespread.

Penny Ciniewicz, HMRC Director General of Customer Compliance, said: “HMRC is committed to ensuring that workers receive the wages they are really legally eligible to, despite their employer’s size or business sector, and today’s figures highlight our success during year.

“If someone thinks they may not be receiving at the least the minimum wage, they might contact the Acas helpline on 0300 123 1100 in confidence or submit a question online through our complaints form.”

Low Pay Commission Chairman Bryan Sanderson said: “All personnel are permitted get paid at the very least the minimum wage, it’s the same best for see increased focus on enforcement bearing fruit and securing more arrears to get more workers.

“Focus to the minimum wage is important for workers and employers alike, and strong enforcement is important for its success.”

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