what is the
The Living Wage is an independently calculated hourly wage which reflects the cost of living in London
The real Living Wage is currently £10.55 per hour in London and is updated each autumn. It is a voluntary rate which employers can choose to pay. It gives workers a fair and decent rate of pay. Paying it shows the core values of the business.
The Living Wage is overseen by the Living Wage Foundation (www.livingwage.org.uk) and is backed by the Mayor of London, Citizens UK and over 1000 employers in London who have chosen to become ‘Living Wage Employers’, including KPMG, Nationwide and Burberry. Employers are joining up every month.
The Living Wage is significantly higher than the Government’s statutory Minimum Wage, which was rebadged as the ‘national living wage’ in April 2016. The Government’s current statutory minimum is £7.83 per hour for those who are 25 or over.
Why the Living Wage is good for business
There is growing evidence from a number of independent studies that employers who pay the extra cost of a Living Wage also see a range of business benefits – including:
Lower staff turnover
Higher team morale
Paying the Living Wage says something about a business’s core values and how it regards its employees, but it also has practical benefits too.
A recent report by the Royal Institute of Chartered Surveyors (RICS) highlighted the benefits of the Living Wage to Facilities Management companies, including cleaning services.
Mayor of London Sadiq Khan has also fully endorsed the Living Wage:
“Paying the London Living Wage is not just the right and moral thing to do, it makes good business sense too. As many employers already accredited know, the benefits are clear - including increased productivity and reduced staff turnover. The London Living Wage is a fantastic campaign and I will be working to encourage more businesses across our great city to get involved." (2016)