Have you heard this week that the real living wage is to increase? This is not to be confused with the National Minimum/Living Wage (NMW/NLW) which is the legal minimum that employers in the UK must pay. For more information on the NMW/NLW legal minimum rises from April 2022 see my blog post HERE.
What is the real living wage?
It is a voluntary pay rate which is paid by over 8,500 employers. The rate is the only wage rate independently calculated based on rising living costs – including fuel, energy, rent and food.
The Real Living Wage:
- applies to all workers aged 18 and above
- rates are based on the cost of living
- is independently calculated and is not set by the Government
- has an annual update on 15th November to reflect changing living costs
- is a voluntary rate paid by over 8,500 employers
- has a separate London rate because the cost of living in London is higher
What are the current and new rates?
The Current UK rate is £9.50 per hour and the current London rate is £10.85 per hour.
However, it has been announced this week that it is increasing to £9.90 for the UK rate and the London rate is increasing to £11.05 per hour. Employers who have signed up to the real living wage have been asked to implement the rise as soon as possible and no later than 15th May 2022.
You can find out more and become a Living Wage Employer here