The voluntary living wage increases today as follows:
- Workers across UK (except London) - will receive an increase of 25p to £9.00 per hour
- Workers in London - will receive an increase of 35p to £10.55 per hour
This new rate is set by the Living Wage Foundation and is calculated to provide enough money for people to live on. Unlike the National Minimum Wage and National Living Wage, it does not vary depending on the age of the worker. Instead, workers are paid the same rate unless they work in London to reflect the higher costs of living in the capital.
Employers who are accredited by the Living Wage Foundation must implement the rise as soon as possible and within six months which means that all new employees should receive the new rate by 1 May 2019.
More than 4,700 businesses have already signed up, benefiting around 180,000 workers.
Some 4,700 employers across the UK are signed up to the agreement, including large companies including IKEA, Aviva, Nationwide Building Society and Google. They have to pay the real living wage not just to their staff, but to any sub-contractors as well. About 180,000 employees will qualify for the pay rise.