{"id":2411,"date":"2022-03-02T02:20:54","date_gmt":"2022-03-02T02:20:54","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2411"},"modified":"2022-06-16T03:20:17","modified_gmt":"2022-06-16T02:20:17","slug":"living-wage","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/living-wage\/","title":{"rendered":"What Should an Employer Know About the Living Wage?"},"content":{"rendered":"

As an employer, you should be aware that you have legal requirements to pay your staff a minimum wage<\/a>. This is the National Minimum Wage or National Living Wage. The value you owe depends upon your staff’s age. However, you may be less familiar with the term Living Wage or Real Living Wage, which is not a legal requirement and not directly related to either the National Minimum Wage or National Living Wage. Unfortunately, sometimes the term National Living Wage is termed the \u2018Living Wage\u2019, and as a result, you may find yourselves confused.<\/span><\/p>\n

This article will explain what the Living Wage is and what you as an employer need to know about it. It also helps you understand how this is not the same as the National Living Wage and shows some key differences between the two.<\/span><\/p>\n

What is the Living Wage?<\/span><\/h2>\n

The Living Wage is a voluntary UK rate of pay you may choose to pay your staff, reflecting actual living costs. It was launched by<\/span> Citizens UK<\/span><\/a> in 2001 with the support of independent businesses, organisations, and citizens. Ultimately, Citizens UK\u2019s motive was that a hard day’s work deserves a fair day’s pay.\u00a0<\/span><\/p>\n

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The Living Wage is sometimes titled the Real Living Wage.<\/span><\/p>\n<\/div>\n

The Living Wage has been calculated independently from the Government to reflect the cost of living and meeting everyday needs. The calculations reflect a basket of services and household items. Likewise, a separate rate exists for London, which applies to all boroughs in Greater London.<\/span><\/p>\n

If you choose to pay the Living Wage, it applies to all directly employed staff over the age of 18 years. Notably, it does not matter how many hours they work for you. As it is a voluntary rate, it is not a legal requirement to pay the Living Wage, so it is up to you whether you wish to do so.\u00a0<\/span><\/p>\n

Is the Living Wage the Same as the National Living Wage?<\/span><\/h2>\n

The Living Wage is <\/span>not <\/b>the same as the National Living Wage. However, the Living Wage was inspired by the National Living Wage.\u00a0<\/span><\/p>\n

The National Living Wage is a legal minimum wage those over 23 years should receive. Therefore, as an employer, you have legal obligations to pay your applicable staff this rate. Likewise, the National Living Wage does not base its rate upon living standards and meeting everyday needs. It is calculated based on a target that the Government believes businesses can afford to pay their staff at an hourly rate.\u00a0<\/span><\/p>\n

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The target is to meet a 66% median earning by 2024.\u00a0<\/span><\/p>\n<\/div>\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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