HM Revenue and Customs (HMRC) is urging people working over the festive period to carefully check their payslips to ensure they are being paid the correct amount.
The tax authority has launched a “check your pay” campaign aimed at seasonal workers and people on short-term contracts.
HMRC said temporary staff are legally entitled to the same minimum wage protections as permanent employees.
The campaign comes during a period when large numbers of short-term roles are filled in retail, hospitality, warehousing and Christmas markets.
Kevin Hubbard, HMRC director of 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.”
Every worker in the UK is legally entitled to be paid at least the national minimum wage.
The rate a worker receives depends on their age and employment status.
Workers aged 21 and over must be paid the national living wage of £12.21 an hour.
Those aged between 18 and 20 are entitled to a minimum of £10.00 an hour.
Workers under the age of 18 must receive at least £7.55 an hour.
Apprentices are entitled to £7.55 an hour if they are under 19 or if they are aged 19 or over and in the first year of their apprenticeship.
HMRC have issued the warning to Christmas workers
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These rates apply regardless of whether someone works full time, part time, seasonally or while studying.
Minimum wage rates are set to increase on April 6, 2026.
Workers are warned there are several ways workers can be underpaid without realising it.
Unpaid working time is one of the most common issues identified during investigations.
Examples include arriving early to open premises, staying late to clean or close, or completing mandatory training outside scheduled hours.
Deductions for uniforms, tools or equipment can also reduce pay below the legal minimum.
Employers are not allowed to count tips towards minimum wage pay.
Workers whose birthday moves them into a higher minimum wage age band must be paid the new rate from that point.
Time spent travelling between work locations during a shift should also be paid
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HMRC said normal commuting time to and from work does not count as paid working time.
During the 2024/25 tax year, HMRC found more than 25,200 workers across the UK had been underpaid.
The total amount owed to workers was £5.8million.
Around 750 employers were issued penalties during the same period.
The fines issued totalled £4.2million.
HMRC said employers who fail to comply with minimum wage law can face penalties of up to 200 per cent of the amount owed.
Businesses are also required to repay all outstanding wages to affected workers.
HMRC continues to publish naming and shaming lists of employers found to have broken minimum wage rules.
Workers who believe they have been underpaid can report concerns to HMRC online.
The reporting process typically takes around five minutes to complete.
HMRC said complaints can be submitted anonymously or on behalf of someone else.
People do not need to still be employed by the business in question to make a report.
Concerns can be raised at any point after employment has ended
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GETTYKate Underwood, a HR expert, advised workers to review their pay carefully over the festive period.
“If your payroll’s playing Grinch, HMRC will play judge, jury and invoice.”
She said workers should check their age-band minimum wage rate, hours worked and any deductions from pay.
Workers are advised to keep copies of rotas, clock-in records and payslips, and raising concerns in writing can help create a clear record if an issue needs to be escalated.