People working full-time on Real Living Wage set to earn an extra £2,262 a year
Almost half a million workers on the voluntary so-called Real Living Wage are set for a pay rise after it was announced that rates are to increase. The rate will rise by 60p to £12.60 an hour across the UK and by 70p to £13.85 in London for workers at more than 15,000 employers.
The voluntary rate compares with the statutory minimum wage of £11.44 an hour for workers over 21 and £8.60 for 18 to 20-year-olds. 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.
In the past three years record numbers of employers have signed up to pay the Real Living Wage, including to third-party contractors like cleaners and security guards, with one in nine employees now working for an accredited living wage employer. A full list of employers can be found here.
Living Wage Scotland is a partnership with the Living Wage Foundation and receives funding from the Scottish Government. Scotland has the highest proportion of workers aged 18 and over who are paid the Real Living Wage at 89.9 per cent - ahead of 87.1 per cent in Wales, 87 per cent in England and 84.4 per cent in Northern Ireland.
Commenting on the pay rise, Katherine Chapman, director of the Living Wage Foundation, said: “Low-paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices.
“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.
“It’s a challenging time for businesses too, which is why it is so encouraging to see the living wage movement continue to grow at pace. This year we reached the major milestone of 15,000 accredited employers, with half of them signing up since 2021.”
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.
“We hope this year’s uplift, along with our enhanced flexibility and benefits offer, will provide co-workers’ with greater financial stability and the support needed to live a better everyday life.”
Real Living Wage in Scotland
More than 68,000 people in Scotland working for more than 3,750 Real Living Wage Employers are set to receive the new payment rate of £12.60 an hour.
There are now over 3,750 Living Wage Employers in Scotland, with recent accreditations including First Bus. They join half of the FTSE 100 companies, household names like SSE, Aviva, Ikea, Burberry and LUSH as well as thousands of small businesses, who are choosing to pay the Real Living Wage to provide workers and families with greater security and stability.
Deputy First Minister of Scotland Kate Forbes said: "After record-high living costs over the past two years, this will be a welcome boost for thousands of workers across Scotland.
“The Scottish Government has championed the real Living Wage since 2015, and we have made it a legal requirement for all organisations receiving grant funding
from a public body to pay the real Living Wage. This has enabled Scotland to have the highest proportion of workers being paid the real Living Wage or higher in the UK.”
Employers who are signed up have until the deadline of May 1, 2025 to pay the increased rates but are encouraged to pay it as soon as possible.