What is “The living wage”?
The living wage is the hourly rate of pay calculated independently to be the minimum that a worker needs to earn to cover the basic costs of living. An employer may choose to pay it, but has no statutory obligation to do so. This is different from the statutory national minimum wage rate that must be paid to workers aged 23 and over and currently is £8.91 and due to increase in April 2022.
From 9 November 2021, the rate of the living wage is set at £11.05 an hour in London and £9.90 an hour outside London.
Employers can apply to the Living Wage Foundation for accreditation if all their directly employed and contracted staff are paid the voluntary living wage. The number of employers who have become accredited has increased over the last 12 months and employers can become accredited however small.
If you would like to learn more about either the national minimum wage or the living wage contact Guildford HR.