Real Living Wage increases to £9.90 an hour

By Nikkie Thatcher contact

- Last updated on GMT

Salary increase: the real Living Wage differs from the Government's National Living Wage as employers sign up to it volunatrily (image: Getty/gregory_lee)
Salary increase: the real Living Wage differs from the Government's National Living Wage as employers sign up to it volunatrily (image: Getty/gregory_lee)

Related tags: Finance, Wages, Recruitment, Government

Workers employed by firms that have voluntarily signed up to the Real Living Wage set to receive a pay rise of 40p an hour.

The Real Living Wage is based on the cost of living and is voluntarily paid by almost 9,000 employers including BrewDog. Altus Pubs Co and Boxpark Croydon.

However, this is different to the National Living Wage (NLW), which is currently at £8.91 an hour for workers aged over 23, and is set to increase by 6.6% next year, to £9.50 an hour.

The Living Wage Foundation, which sets to rate, stated the Government’s NLW differs from the real Living Wage is the only wage rate independently calculated based on rising living costs including fuel, energy, rent and food.

Wage difference

It estimated a full-time worker earning the new real Living Wage would earn £1,930 a year more than a worker on the Government’s NLW.

Taking the increased NLW amount into account, which is set to come into force next April, a full-time worker earning the real Living Wage would earn £780 more.

The Living Wage rise means more than 300,000 workers across the real Living Wage employers will receive the 40p pay boost and for those in London, the rate has increased by 20p to £11.05 an hour.

Responsible employers

Living Wage Foundation director Katherine Chapman said: “With living costs rising so rapidly, today’s new Living Wage rates will provide hundreds of thousands of workers and their families with greater security and stability.  

“For the past 20 years the Living Wage movement has shaped the debate on low pay, showing what is possible when responsible employers step up and provide a wage that delivers dignity. 

“Despite this, there are still millions trapped in working poverty, struggling to keep their heads above water – and these are people working in jobs that kept society going during the pandemic like social care workers and cleaners. 

“We know the Living Wage is good for businesses as well as workers, and as we rebuild our economy post pandemic, the real Living Wage must be at its heart.” 

Related topics: Legislation

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