Recently, the UK’s Real Living Wage experienced another boost, reaching as high as £13.15 per hour in the London area.
Meanwhile, outside of London, the hourly rate has reached £12.
This change is expected to benefit nearly 500,000 employees across over 10,000 companies.
Real Living Wage
The UK’s Real Living Wage is certified by the Living Wage Foundation.
Its primary goal is to ensure that workers can cover their basic living costs, including food, housing, and transportation.
This sets it apart from the government-mandated National Minimum Wage and National Living Wage.
Real Living Wage is developed and maintained by an independent charitable organization.
This program is voluntary for employers, aiming to attract and retain high-quality talent and reduce turnover.
Latest Real Living Wage Changes in the UK
Starting this Tuesday, employers in the London area raised the living wage by £1.20, reaching £13.15 per hour.
Companies outside London increased the minimum wage by £1.10, reaching £12 per hour.
Notable participants in the Real Living Wage system include companies like Aviva, IKEA, and Burberry.
The system remains independent and is calculated individually based on people’s living conditions.
Employer Participation
Many UK employers voluntarily follow the Real Living Wage and pay relatively higher wages to their employees.
Research indicates significantly lower turnover rates and higher employee morale among businesses that embrace this initiative.
Employers joining the Real Living Wage program require sufficient financial support and a strong sense of social responsibility.
Their full-time employees’ real wages are estimated to exceed minimum wage standards by £3,000-£5,000 annually, leading to a significant increase in disposable income.
