The official living wage rate has increased to £8.45 an hour, marking a 20p increase on the hourly rate, which is a voluntary benchmark for employers and is paid by a third of FTSE 100 companies
The rate is higher than the UK-wide official National Living Wage for those over 25, which is set at £7.20, while those under 25 must be paid the national minimum wage (NMW).
The Living Wage that meets the real costs of living is reviewed every year using the best evidence about living standards in the UK.
The London Living Wage is currently £9.75 per hour. This figure covers all boroughs in Greater London. The UK Living Wage for outside of London is currently £8.45 per hour.
These figures are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in London and the UK.
This week is Living Wage Week – a UK-wide celebration of the nearly 3,000 employers that have voluntarily committed to ensure employees and subcontracted staff working on their premises earn a real Living Wage. This includes nearly a third of the FTSE-100 and major household names such as IKEA, Nationwide, Oliver Bonas and the Houses of Parliament.
‘630 employers in Scotland are now accredited Living Wage employers and I want to see all businesses implement the new Living Wage rates as soon as possible. For business, paying the Living Wage makes sense - it’s an investment in people and all the evidence shows it leads to increased productivity and reduced staff absence and turnover, while sending a strong signal to customers about fairness.’