THE “real Living Wage” is a campaign that aims to pay workers according to living costs.
This means that the hourly rate is calculated differently from the National Minimum Wage and National Living Wage.
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What is the real living wage?
The Real Living Wage campaign is a movement that calculates the hourly rate according to the cost of living.
The campaign started back in 2001 by Citizens UK and called on employers across the country to increase pay.
It is now voluntarily paid by more than 7,000 UK businesses.
The Real Living Wage Foundation has found that the Real Living Wage is also beneficial for businesses as it boosts morale and leads to fewer staff turnovers.
How is the real living wage calculated?
London’s Living Wage is currently £10.85 per hour while the Living Wage for outside of London is £9.50 per hour.
The real living wage is calculated based on data about the cost of living in London and in the UK.
The Minimum Income Standard is used in order to accurately identify the everyday living expenses in the country.
Who pays the real living wage?
There are currently over 8000 companies that have chosen to pay the Real Living Wage.
Some of them are Nationwide, Google, Brewdog, Everton FC and Chelsea FC.
According to a survey conducted by the foundation and Cardiff Business School, 86 per cent of the companies found that the Real Living Wage contributed positively to their reputation while 75 per cent said it increased motivation and lowered staff turnover.
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