Would you like track your mileage, receipts & income, use 17 essential business calculators
and earn up to £100 per referral?
Download our FREE mobile app
UK Living Wage rates riseSource: Other | | 07/11/2017
The current National Minimum Wage (NMW) hourly rate for adults between 21-24 years old is £7.05, and the national living wage is £7.50 for those aged 25 and over. The Living Wage Foundation (an initiative of Citizens UK), recently announced living wage rates for London and the UK at £10.20 an hour and £8.75 an hour respectively.
The Living Wage rates are not statutorily binding but represent an increase of 3.6% in the UK and 4.6% in London over the current rates. The new Living Wage rates were announced on the 06 November 2017 and all of the accredited employers have committed to implement them by the end of the financial year.
The rate for outside London is almost 17% higher than the official minimum wage for the over 25’s. The Living Wage is an independent calculation that reflects the real cost of living. The London rate is set by the Greater London Authority and is based on a combination of a basic living costs approach and income distribution, with respect to a variety of household types and which takes into account the unique circumstances of living in London.
There are now over 3,600 Living Wage accredited organisations across the UK who have committed to pay these higher rates. The foundation also announced that Heathrow Airport has become the first airport to sign-up, bringing a pay rise to some 3,200 workers.
Katherine Chapman Director of the Living Wage Foundation said:
'The new Living Wage rates announced today will bring relief for thousands of UK workers being squeezed by stagnant wages and rising inflation. It’s thanks to the leadership of over 3,600 employers across the UK who are committed to paying all their staff, including cleaners and security staff, a real Living Wage.
Great businesses know that, even during these tough times, not only is fair pay the right thing to do but paying the real Living Wage brings big benefits. Nine out of ten accredited Living Wage employers report real benefits including improved retention, reputation, recruitment and staff motivation.'