What is the Living Wage?

 To hear about the impact that the Living Wage can have on the lives of employees, please watch this short video:

 

For the employer

 Research conducted on accredited employers who have introduced the Living Wage shows:

  • A 25% fall in absenteeism
  • 80% of employers believe that the Living Wage has enhanced the quality of the work of their staff
  • 66% of employers reported a significant impact on recruitment and retention within their organisation
  • 70% of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer

PwC (PricewaterhouseCoopers) found that turnover of contractors fell from 4% to 1% following the adoption of the Living Wage.

 

For the employee

The figure for the Living Wage is calculated using detailed research on what is needed to cover the basic cost of living in the UK.

Therefore, the Living Wage affords people the opportunity to provide for themselves and their families.

Independently conducted research with employees who work for an employer who has been accredited as paying the Living Wage shows:

  • 75% of employees report increases in work quality as a result of receiving the Living Wage
  • 50% of employees felt that the Living Wage had made them more willing to implement changes in their working practices; enabled them to require fewer concessions to effect change; and made them more likely to adopt changes more quickly

For society

The causes of poverty are complex. In order to improve lives, a package of solutions across policy areas are required. The Living Wage can be part of the solution.

Paying a Living Wage can afford workers more time to spend with their friends and loved ones, and time to dedicate to their local community.

 

How is it calculated?

Paying a Living Wage can afford workers more time to spend with their friends and loved ones, and time to dedicate to their local community. The real Living Wage is calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in London and the UK. 

A detailed account of the methodology behind it's calculation is available here.

 

Historical data

NATIONAL

Year

National Min Wage*

UK Living Wage**

Difference

2011

6.08

7.20

1.12

2012

6.19

7.45

1.26

2013

6.31

7.65

1.34

2014

6.50

7.85

1.35

2015

6.70 / 7.20

8.25

1.55

2016 6.95 / 7.20 8.45 1.50

 

What do Living Wage employers say?

The Scottish Living Wage Accreditation Initiative issued a survey to all accredited Living Wage employers in Scotland in March 2016. The survey was issued to 432 accredited Living Wage employers and 158 employers responded. This report is a summary of the findings of this survey from the employers who responded.
 
The survey was anonymous, however information on the size, sector and geographical location of the employers who responded can be found in the appendix.  The results have been collected and can be seen below however if you would like a PDF copy of the survey please email accreditation@povertyalliance.org 
 
 

Reporting Non-Payment

 
If you are an employee who is at a Living Wage Accredited employer but you are not receiving the Living Wage, please report it here:
 
http://www.livingwage.org.uk/contact-us-non-payment
 
 
 

 

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