UK Real Living Wage Increase

Not to be confused with the National Living Wage and National Minimum wage that the government publishes and makes it a legal requirement for employers to pay employees a minimum rate per hour based upon age.

The Real Living Wage is an hourly rate of pay calculated by the Resolution Foundation and published by the Living Wage Foundation as to what an individual needs to live on.

The Real Living Wage has been increased to £12.60 (from £12.00) per hour across the UK and £13.85 (from £13.15) per hour in London.

Comment

These rates are significantly higher than

• The National Living Wage at £11.44 ph for ages 21+.
• The National Minimum Wage at £8.60 ph (18-20yrs) and £6.40 ph (16-17 yrs and Apprentices).

Over 15,000 employers have signed up voluntarily to the Real Living Wage commitment.  That said, with the Budget coming, possible rate rises for business premises and employer national insurance contributions possibly rising, it may be difficult for some employers to remain committed to the Real Living Wage.