Research: Low Pay Commission: Non-compliance and enforcement of the National Minimum Wage

This Low Pay Commission (LPC) report considers the scale and nature of non-compliance with the National Minimum Wage and National Living Wage (NLW), and assesses the government's enforcement activities.

Key findings:

• Underpayment of wages is at its highest immediately after an uprating of the minimum wage, when as many as 1 in 5 low-paid workers aged 25 and over may actually be paid less than they are entitled to.
• In the three to six months that follow an uprating of the minimum wage, levels of underpayment fall significantly.
• A large number of salaried workers are paid less than the minimum wage. They make up 11% of people paid at the NLW but 44% of those paid below it.
• Recent developments in the government's enforcement of the NLW have led to successes. However, there are areas where it could go further. The LPC makes several recommendations in this regard.