Real Living Wage Increase

As opposed to the government’s National Living Wage, which is the mandatory minimum hourly rate that must be paid to all employees, the real Living Wage is a voluntary rate set by the Living Wage Foundation. As the name suggests, the real Living Wage is calculated based on the up-to-date cost of living and is usually updated each November. The real Living wage is a set figure that applies to anyone over the age of 18, whereas the government-set Living Wage varies for different age groups (under 18s, 18-20-year-olds, 21-22-year-olds, and over 23s).

This year, the real Living Wage will increase by 10.1%, the most significant increase since the Living Wage Foundation began. Before the rise, the real Living Wage was £11.05 per hour in London and £9.90 in the rest of the UK. Now this will be raised to £11.95 per hour for London, and £10.90 in the rest of the UK.

Although the real Living Wage is voluntary, if employers choose to pay these rates they can be considered an accredited Living Wage employer. Accredited Living Wage employers will have to comply with this increase to keep this title.