Voluntary Real Living wage Increase

The Real Living Wage is a voluntary wage rate based on the cost of living. It is overseen by the Living Wage Foundation which has confirmed that over 14,000 UK businesses choose to pay it to their staff. Over 460,000 employees whose employers pledge to pay the Real Living Wage are set for a pay rise as the rates for 2023–24, are introduced for 1 May.

By contrast with the official National Living Wage, which is currently £11.44 per hour across the UK, the Real Living Wage is set at £12 across the country and £13.15 in London. This means that workers on the Real Living Wage will earn £1092 a year more than those on the government-backed rate and if they are in London, will earn £3334 more.

The Living Wage Foundation stated that the real Living Wage rates are higher because they are independently-calculated based on what people need to get by rather than the Government-minimum. In order to become an accredited Living Wage employer, a business needs to pay all of its directly employed staff a Living Wage, and have a plan in place to extend that to regular sub-contracted staff as well.

A series of questions and answers about how the system works, including the accreditation process and what payments are included in the Living Wage rates, can be found on the Living Wage Foundation website.

121 HR Solutions is always pleased to discuss pay benchmarking with clients. If you would like further guidance on this subject, contact us on 0800 9995 121.

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