From 1 April 2016, the Government introduced a new mandatory national living wage (NLW) for workers aged 25 and above. It was initially set at £7.20, 50p more than the National Minimum Wage (NMW) rate at the time. The Low Pay Commission will provide recommendations on the level of NLW in the future.
The Living Wage Foundation (LWF) accredits employers that pay the independently-calculated Real Living Wage (RLW) rates to all their staff, and the London Living Wage for those in London. These are higher than the mandatory NLW. They also accredit those committed to an agreed timetable of implementation, by awarding the Living Wage Employer Mark. The current rates of this independently calculated Living Wage are £8.45 an hour for the UK and £9.75 an hour for London.
Cardiff University undertook an independent study of more than 800 accredited RLW businesses earlier this year, and found that:
- 58% saw an improvement in the motivation of staff following accreditation (rising to 78% for organisations with more than 500 staff)
- 50% reported that the RLW had improved both recruitment and retention
- 86% reported that Living Wage accreditation had enhanced their organisation’s general reputation as an employer
- 64% found that paying the Living Wage differentiated them from others in their industry.
Employers who are interested in becoming accredited should contact the LWF https://www.livingwage.org.uk/contact-us-employers and register their interest in doing so.
For more information, please contact Nia Cooper.
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