Do you pay all your staff a living wage? Do you know what the living wage is right now? Read on, to find out more.
What is the living wage?
As you may be aware, the Living Wage Foundation (LVF) is an organisation which campaigns to encourage all employers to pay their staff a rate of pay which genuinely reflects the current cost of living. This is sometimes called the ‘real living wage’. Given the world as it is right now, it should come as no surprise to find that following a recent review of its living wage rates, the LVF has announced that its London living wage has increased from £11.05 to £11.95 and its UK wage rate has increased from £9.90 to £10.90. All employers who have adopted the ‘real living wage’ are required to implement the increase by 14 May 2023 at the latest.
What about the National Living Wage then?
It is important (and interesting) to compare and contrast the LVF's living wage rates with the so-called National Living Wage (NLW). The NLW, which is set by the Government and represents the minimum wage payable to those aged 23 and over, currently sits at £9.50 (regardless of where you live). As a result, there is a stark difference between the hourly pay rate guaranteed by the NLW and the London living wage, which is £2.45 per hour more. Based on a 35-hour working week, this could make a difference of £85.75 to a workers’ gross weekly wage.
Have you considered adopting the ‘real living wage’ within your organisation?
If you'd like to know more about the Living Wage Foundation and the ‘real living wage’, take a look at their website, which can be found here.