Real living wage to rise to at least £12.60 an hour – here's what you need to know

MSE_Molly_G

Almost half a million workers are set to see their hourly pay rise by 5% due to an increase in the 'real living wage' – a voluntary employers' pay scheme based on the cost of living. Those covered by the scheme will see their pay rise to at least £12.60 an hour, while those in London will get £13.85 an hour.

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Real living wage to rise to at least £12.60 an hour – here's what you need to know

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LightFlare

I wonder if the same people that harped on about public sector getting 5% and how that was unaffordable and inflationary will be saying the same over this

In reality, this will have a greater effect on high street prices

tizerbelle

LightFlare said:

I wonder if the same people that harped on about public sector getting 5% and how that was unaffordable and inflationary will be saying the same over this

In reality, this will have a greater effect on high street prices

Don't get this confused with the National Living Wage that is set by government and is a legal minimum for workers aged 21 and over.  The NLW currently stands at £11.44 per hour and no announcement has yet been made as to what the NLW will change to in April 2025.

The higher Real Living Wage as calculated and published by the Living Wage Foundation only applies to those employers who want to pay these rates (and they can also decide not to).  

ETA: Low Pay Commission who recommends the NLW/NMW rates most recently susggested NLW 2025 would be somewhere between £11.82 to £12.39 with £12.10 being mooted as a likely level to keep the two thirds of median earnings.

penners324

No announcement as to when that is from, so I assume immediately 

EnPointe

penners324 said:

No announcement as to when that is from, so I assume immediately 

the 'Real Living wage' is an entirely voluntary  scheme  administered by the Living Wage Foundation ( for those  organisations seeking the accreditation  with all the hoops around suppliers and contractors  )  

https://www.livingwage.org.uk/

The National Living wage  , the Selfservatives' re-brand of the over 25, then over 21  rate of the national minimum wage is Statutory and generally  runs in line with the tax year ( so April ) 

penners324

EnPointe said:

penners324 said:

No announcement as to when that is from, so I assume immediately 

the 'Real Living wage' is an entirely voluntary  scheme  administered by the Living Wage Foundation ( for those  organisations seeking the accreditation  with all the hoops around suppliers and contractors  )  

https://www.livingwage.org.uk/

The National Living wage  , the Selfservatives' re-brand of the over 25, then over 21  rate of the national minimum wage is Statutory and generally  runs in line with the tax year ( so April ) 

I'm fully aware of that. My company are signed up to RLW

tizerbelle

penners324 said:

No announcement as to when that is from, so I assume immediately 

You'd assume wrong.  Accredited RLW companies should apply new rates as soon as practical to implement but by no later than the 1st May (6 months) after the rates are announced.  It will depend on your employer's financial year and planned pay review periods.