A study by the Low Pay Commission (LPC) has revealed that 580,000 British workers are probably paid less than the legal wage rate, with one in five low-paid workers receiving less than they are entitled to.
Women employed in part-time roles are the biggest losers when it comes to being paid fairly, with the LPC predicting that between 305,000 and 580,000 workers, mostly in retail, are affected by the problem.
The LPC is to recommend what salaries should be for those affected from April 2018.
The current national living wage rate for over 25s, is ยฃ7.50 an hour, while minimum wage rates for 21 to 24-year-olds is ยฃ7.05 and ยฃ5.60 for 18 to 20-year-olds.
โWith more workers than ever paid the minimum wage or close to it, more people are at risk of being underpaid,โ said LPC chairman Bryan Sanderson.
โOur analysis finds that up to one in five people who should be paid at least the minimum wage may in fact receive less.
โThe LPC welcomes the recent increases in funding for HMRCโs enforcement of the minimum wage, and recognises the progress it has made.
โHowever, we also think there is more the Government could do to identify non-compliance and stop it happening in the first place.โ