Almost 500,000 employees are in line for a salary increase following the announcement of an upsurge in the Real Living Wage.
The Real Living Wage, which is a voluntary payment designed for workers aged 18 and above whose employer is affiliated with the Living Wage Foundation, is structured to cover essential expenses like food, clothing, and household bills.
The new hourly rates will see a boost of 85p to reach £13.45 per hour, a 6.7% rise, and an increase of 95p to £14.80 per hour in London, a 6.9% hike, surpassing the legal minimum wage.
Applicable to all employees above 18 years old working for a Real Living Wage-certified employer, which now numbers over 16,000, this year’s increment translates to an additional £2,418 annually for a full-time worker compared to someone on the minimum wage, and £5,050 more for those in London, as detailed by the Living Wage Foundation.
Katherine Chapman, the executive director of the Living Wage Foundation, emphasized the significance of a wage that covers basic needs, highlighting that the Real Living Wage is calculated independently based solely on the rising cost of living.
The increased rates are expected to significantly benefit workers and their families, aiding them in managing expenses such as rent, bills, and food for a more stable and secure livelihood.
Unison general secretary, Christina McAnea, pointed out that the rise establishes a clear standard for ensuring workers are not pushed into poverty, with low-income staff at fair employers reaping the rewards. McAnea stressed the government’s responsibility to ensure decent pay for public service workers to enable them to meet their financial obligations and provide their best service to the public.
Additionally, concerns were raised regarding NHS staff falling further behind the Real Living Wage rate, potentially prompting them to seek opportunities in other sectors offering competitive hourly rates. McAnea called on ministers to address this issue by collaborating with unions to rectify the situation.