How do Contractors pay the Living Wage?

 

As a contractor for an organisation that has taken the decision to pay the Living Wage, you will naturally have questions about how this is applied. This page will try to answer your questions and provide you with a contact to follow up with any further enquiries you may have.

 

What is the Living Wage?

The Living Wage is a voluntary rate of pay. It is calcuated based on the cost of living. Employers who pay the Living Wage to their staff can apply for Living Wage Accreditation.

The Living Wage we refer to is the ‘real Living Wage’ – the rate is currently £8.75 an hour. This rate is not mandated by law, but is a voluntary rate that employers can choose to pay. The rate is updated in the first week of November each year. The Scottish Living Wage Accreditation Initiative can recognise employers in Scotland with accreditation as Living Wage employers.

This Living Wage is not the ‘national living wage’ – which is the government’s enhanced minimum wage for workers. These rates vary by age as demonstrated below, and is updated each April.

 

 

 

Who qualifies for the real Living Wage?

The real Living Wage rate applies to every employee over 18 who works regularly on the premises of an accredited employer, as long as they are not an apprentice or an intern.

For an organisation to remain accredited, they must also make sure that contracted workers who are regularly on site are paid £8.75 while they are on site. For the purpose of accreditation, 'regularly' is defined as workers who are on site for 2 hours in any given day over an 8 week period.

What is your definition of 'regularly'?

We work on the basis that regular employment is two hours on any given day in the week, for an 8 week consecutive period. This means that a cleaner working for 2 hours each Wednesday at a company for 8 weeks in a row would need to be paid the Living Wage. However, a worker who cleans for 1 hour every day would not be covered.

Can my organisation get accredited too?

Yes! We encourage all of our accredited employers to speak to their contractors about accreditation. If you want to find out more about accreditation please get in touch via accreditation@povertyalliance.org and one of our team will guide you through the process.  

 

 

 

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