Living wage increases to £7.85 (£9.15 in London.)

The Living Wage Foundation annually reviews the basic costs of living when calculating its Living Wage recommendations, i.e. the amount of money it believes employers should pay employees to ensure that they can afford to live off their wages. Although voluntary, the Living Wage does have an impact on all employers as employees are becoming increasingly aware of its existence, and those paid the National Minimum Wage (NMW) are likely to favour Living Wage Companies when looking for work. To illustrate a 40 hour a week adult worker on the NMW will earn £260 per week, whereas a Living Wage person would earn £366 in London, £314 outside the capital.

At myHRdept we provide HR & employment law services to many different types of employers, and while many of our clients pay above the minimum wage many, typically in the hospitality industry and the care sector, do not. There are particular difficulties facing these sectors following recent case law driving up wage costs, meaning that any appeal to pay the Living Wage as opposed to the Minimum wage is likely to fall on deaf ears.

On Monday KPMG published research revealing 22% of the working population earn less than the old Living Wage, amounting to five million people. At the same time Citizens UK, the group behind the Living Wage revealed that the number of employers agreeing to pay the rate had doubled in the last year, and the list of those committed include Barclays & Standard Life.

If you’re thinking of outsourcing your HR why not contact With full service packages for medium sized companies typically from only a few hundred per month (and from only £100 per month for smaller companies and start-ups) we believe we offer the best combination of quality and price available in the UK. Call us on 01628 820515 to discuss your requirements or email us here and we’ll call you back.

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