1 in 5 cheated out of wages

Rogue bosses abuse minimum pay rules

ONE in five workers were paid less than the national minimum wage last year, it has been revealed.

The Low Pay Commission said bosses failed to pass on the pay hike to hundreds of thousands of staff when the minimum wage was raised to £7.50 an hour last October.

It estimates that between 305,000 and 580,000 workers were left out of pocket – and the vast majority of them were women.

According to the Commission – the body charged with overseeing and setting the national minimum wage – women made up two thirds of underpaid workers. It said this is because female workers are less likely to complain and are often on short-term contracts, or paid hourly.

The Commission also said the Government should do more to tackle firms which fail to pay the minimum wage.

Bryan Sanderson, Commission chairman, said: “With more workers than ever paid the minimum wage or close to it, more people are at risk of being underpaid.

“Our analysis finds that up to one in five people who should be paid at least the minimum wage may in fact receive less. This equates to between 305,000 and 580,000 workers at its highest point.” Dr Shainaz Firfiray of Warwick Business School said: “Women are more likely to work in low-wage sectors and are also less likely to protest against being underpaid. “These findings show that a lot more needs to be done to enforce the minimum wage as well as to ensure the economic security of women. “Economic security doesn’t simply mean being able to cover living expenses but also being able to save for retirement or a home. It’s only by increasing economic security for women we can foster gender equality.”