UK Living Wage rates
The current National Minimum Wage (NMW) hourly rate is £6.95 for adults 21-24 year old and the National Living Wage is £7.20 for those aged 25 and over. The Living Wage Foundation (an initiative of Citizens UK) recently announced Living Wage rates for London and the UK at £9.75 an hour and £8.45 an hour respectively. These rates are not statutorily binding.
The rate for outside London is 17% higher than the official minimum wage for the over 25’s. The Living Wage is an independent calculation that reflects the real cost of living. The London rate is set by the Greater London Authority and is based on a combination of a basic living costs approach and income distribution, with respect to a variety of household types which takes account the unique circumstances of living in London. There are over 3,000 Living Wage accredited organisations across the UK who have committed to pay these higher rates.
Katherine Chapman Director of the Living Wage Foundation said:
‘Today’s new Living Wage rates bring a welcome pay rise to thousands of workers across the UK. 1 in 5 people earn less than the wage they need to get by. That’s why it’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure their employees earn enough to cover the cost of living.
As we kick off Living Wage Week today we are celebrating nearly 3000 employers across the UK who lead the way on tackling low pay by paying the real Living Wage. The sheer growth of our movement shows that the Living Wage is good for people and good for business.’