HALF a million workers employed by more than 15,000 companies paying the real living wage will get a pay boost from today.
The rate will rise by 60p to £12.60 an hour across the UK and by 70p to £13.85 in London for workers.
Nearly half a million workers will get a cash boost from today.[/caption]
Unlike the government-set minimum wage, the real living wage is the only UK pay rate based on the cost of living.
It is voluntary meaning, employers can opt to pay their staff this amount but are not legally required to do so.
As of today, a full-time worker earning the new real living wage will earn £2,262 a year more than a worker earning the current government minimum, according to the Living Wage Foundation.
Employers who are signed up have until the deadline of May 1 to pay the increased rates but are encouraged to pay it as soon as possible.
Katherine Chapman, director of the foundation said low-paid workers have been “hardest hit by the cost-of-living crisis”.
She said: “The real living wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.”
The real living wage was introduced in April 2016, and since then thousands of employers have opted in.
Recent joiners include Pieminister, Fred Perry and the National Theatre.
They join half of the FTSE 100 companies and household names like Aviva, Everton FC, Ikea, Burberry and LUSH.
Darren Taylor, country people and culture manager at furniture retailer Ikea, said: “A business’s success is purely driven by its people, and as a values-driven company we care about our co-workers and their wellbeing. “
“That’s why we’re committed to pay our co-workers a Real Living Wage that creates a fairer, inclusive and healthier standard of living for the many.”
You can find out which companies are signed up to pay the Real Living Wage on the foundation’s website, www.livingwage.org.uk/.
The rates are separate from the government’s national living wage, which sets the minimum hourly rate at £11.44 an hour for workers over the age of 21.
The national minimum wage is also set by the government and it is the minimum pay per hour for workers under the age between 18-20.
Will the national living wage increase?
The national living wage set out by the government usually rises every year to keep in line with increasing prices.
In April this year, the rate increased 10% from £10.42, and has generally risen by more than inflation in recent years.
In September, the Low Pay Commission (LPC), which advises the government on the minimum wage, announced plans to raise the statutory rate to £12.10 per hour.
The government usually confirms how much the National Living Wage will rise when it delivers its Autumn Statement, which will take place next week on October 30.
However, the national minimum wage for children under 18 will not be raised to the same level as that planned for adults.
This means kids aged 16 and 17 still have a slightly lower hourly minimum wage requirement.
Currently, those under 18 are legally required to get £6.40.
Apprentices are paid the same rate, too.
Who gets the National Minimum Wage and am I entitled?
TO qualify for the National Minimum Wage, you have to be of school-leaving age, which is usually above 16.
You are eligible to receive the pay rate if you work full-time, part-time or as a casual labourer.
You are also entitled to the National Minimum Wage if you are an agency worker.
Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period.
The rates also apply to disabled workers.
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment.
