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London Living Wage Shows an Increase of 5.3%
Over 140,000 London residents are set to get a 5.3% salary increase with the London Living Wage raised to £13.85 per hour.
The unique salary established by the nonprofit Living Wage Foundation is determined by independent assessments of how much individuals require to cover their living expenses.
Approximately 3,500 employers in the city have joined the voluntary program.
Katherine Chapman, who is the director of the Living Wage Foundation, stated that the newly raised rate of £13.85 would have a significant impact on workers.
In other parts of the UK, the Real Living Wage increased by 5% to £12.60.
This is distinct from the National Living Wage set by the government.
Employers are required by law to compensate individuals aged 21 and above at the government-mandated minimum wage of £11.44 per hour.
An individual working full-time and earning the London Living Wage will receive an additional £4,700 annually in comparison to someone earning the National Living Wage.
The foundation’s research revealed that nearly 600,000 low-wage workers in London are still affected by the high cost of living, leading to this announcement.
A recent study also discovered that over half of London residents earning less than the London Living Wage visited a food bank within the past year.
‘Happy team’
Employers like The Bird & Blend Tea Co, The Oval Cricket Ground, Shakespeare’s Globe, and West Ham FC in the capital have committed to paying the London Living Wage.
Mike Turner Stated
Mike Turner, who helped start Bird & Blend Tea Co, with three locations throughout London, stated: “Introducing the living wage has not only reduced our turnover but improved recruitment too.
“The blend of treating people fairly and doing business in the right way is our recipe for a successful company and a happy team.”
Muniya Barua Expressed
According to Muniya Barua from BusinessLDN, “This above inflation increase in the London Living Wage will prove challenging for firms at a time when they are facing significant cost pressures.”
Nevertheless, she included that there were evident advantages for the business.
“Not only does it help the lowest paid in society but it also boosts retention and recruitment of talent,” she expressed.
Sadiq Khan Statement
Sadiq Khan, the Mayor of London, stated: “By raising the salaries of the lowest paid workers in the capital, we can build a better and more prosperous city for all Londoners.”
Since 2011, over £1.4bn has been granted in extra pay to low-income workers in London.
What does the London Living Wage refer to?
- A unique salary established by the organization Living Wage Foundation
- It is derived from separate computations of the expenses individuals must meet and is applicable to all employees who are 18 years and older.
- It mirrors the increased living expenses in the city.
- It differs from the government’s National Living Wage, which is the mandatory minimum payment employers must provide to workers over the age of 21.
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