The Living Wage Foundation has announced increases to the voluntary living wage rate.

The current Living Wage is £8.45 an hour, up from the previous £8.25. The rate is London is higher at £9.75 an hour, up from £9.40.

What do I need to know about this rate?

  • The Living Wage Foundation sets rates with the aim of workers’ wages reflecting the “the real cost of living”.
  • This rate is voluntary – employers can choose whether to pay this rate or not. It is completely independent from the Government’s compulsory National Living Wage.
  • The rates put forth by the Living Wage Foundation are higher than the government’s statutory minimum wage rates. At present, those over the age of 25 must be paid at least £7.20 an hour. Workers below 25 earn less.
  • It applies to all workers over the age of 18. The Foundation argues that the rate should not be dependant on age as younger workers face the same living costs as older workers.
  • Nearly 3000 employers are paying this rate, including RSA insurance, Ikea and EDF.

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