In line with the rising cost of living and to mark ‘Living Wage Week’ the Living Wage Foundation has announced a new hourly living wage, increasing by 30p in the UK, and 20p in London, boosting some workers’ annual salaries by up to £5000 with immediate effect.
The voluntary Real Living Wage scheme calls on employers to pay employees a fair wage for a fair day’s work and is independently calculated based on a range of factors such as clothing, food, household bills and transport. The Foundation suggests accredited Living Wage benefits both parties, improving staff retention, motivation and business relations.
The different between the National Living Wage and the Real Living Wage
The National Living wage is a statutory wage, currently set at an hourly rate of £7.70 for under 25s and £8.21 for over 25s for 2019/20.
The Real Living Wage on the other hand is voluntary and is calculated based on actual living costs. This is now calculated as £9.30 across the UK, and £10.75 in London.
The table below illustrates the current minimum, national living and real living wages in the UK and London.
|Minimum Wage||National Living Wage||Real Living Wage|
|Statutory or voluntary?||Statutory – Government minimum for under 25s||Statutory –
Government minimum for over 25s
|Voluntary – Calculated based on actual living costs|
|How much?||£7.70||£8.21||£9.30 (across the UK)
There are almost 6000 accredited Living Wage Employers across the UK, including FTSE 100 companies and big household names such as Nationwide, British Gas, Oxfam and many football clubs.
If you have any queries regarding the Real Living or National Living Wage from either an employee or employer perspective, please get in touch today.