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The national living wage is currently £12 in the UK and £13.15 in London. It is different to the minimum wage which is currently set at £11.44 for 21 and over, £8.60 for 18-20 and £6.40 for 16-17 and apprentices. You can check the current minimum wage on Gov.uk.
However, many people have argued that this is not enough to sustain an ordinary lifestyle. The national living wage is an amount decided upon to be the correct amount and is paid voluntarily to employees to help them with everyday expenses. There are more than 300,000 employees who benefit from the Living Wage and many employers are accredited with the Living Wage Foundation.
The National Living Wage is not based on what employees and their families need to live, but rather, it’s target-based, which means that it is calculated based on average earnings. As of 2024, the National Living wage is 66% of the average earnings in the UK.
The Real Living Wage is higher than the minimum wage because of the fact that it is calculated according to what employees and their families need to get by. However, employers who are able to do so, are encouraged to pay their employees a Real Living Wage to assist with the rise in the cost of living.
As of April 2024, the National Living Wage for all employees over the age of 21 is £11.44 and the Real Living Wage is set at £12 in the UK and £13.15 in London. While the former is statutory, the latter is voluntary.
In comparison, the government minimum wage for under 21s is currently £8.60.
For apprentices, the rates are slightly different. The apprentice rate is £6.40 under the National Minimum Wage and this applies to apprentices under 19 as well as those over 19 and doing their first apprenticeship year. This is why many of them usually look for loans in London.
Apprentices over the age of 19 who have already completed their first year of apprenticeship can get the full Minimum Wage for their age.
The National Living Wage and National Minimum Wage rates change every year on April 1. You can use a minimum wage calculator to determine whether you are currently getting the required minimum wage.
Employers can choose to become a Living Wage employer and get accredited by the Living Wage Foundation. They also have a searchable map so you can find employers near you who pay a Living Wage. There are currently more than 11,000 accredited employers in the UK.
By becoming accredited with the Living Wage Foundation and paying a Real Living Wage to employees, businesses can benefit in many ways.
According to the Foundation, 86% of businesses say their reputations have improved since getting accredited and 75% of businesses say it has increased their motivation and retention rates for employees.
Therefore, any business that decides to be part of the Living Wage Foundation is likely to benefit. If you’re interested in joining, you can go to the Living Wage Foundation’s website and sign up.
