The real Living Wage for 2023 has increased by a whopping 10.1%.
For the UK, it’s increasing to £10.90/hour and for London it’s £11.95.
What is this real Living Wage?
The real Living Wage is an hourly rate of pay set independently and updated annually (not the UK government’s National Living Wage). It is calculated according to the basic cost of living in the UK, and employers choose to pay the Living Wage on a voluntary basis. According to the Living Wage Foundation, since 2011 the campaign has impacted over 390,000 employees and delivered over £2bn extra to some of the lowest paid workers in the UK.
Why the increase?
The sharp increase in cost of living this year has brought about the increase in the real Living Wage.
Just to be clear, this is a voluntary thing – the compulsory National Minimum Wage rates are those that have to be paid but an employer can choose to become a Living Wage employer. It’s most definitely something that will attract new employees to your business though, the fact that you recognise and pay the real Living Wage (as a minimum). In the current climate when new members of the team are hard to come by, wages are just one of the ways you can make sure that you’re competitive in your marketplace.
The National Minimum Wage increases on 1st April 2023 but details have not yet been confirmed, rest assured we’ll keep you updated.
If you have any questions please do contact us!