The announcement marks the beginning of Living Wage Week, an annual celebration of the Living Wage movement. The increase is hoped to provide “greater security and stability” to thousands of people as the cost of living continues to rise.
The Real Living Wage is based on actual living costs rather than the median earnings calculations used for the National Living Wage (NLW) and is calculated and set independently by the UK government. The scheme is voluntary and is used by over 9,000 employers (3,000 signed up during the pandemic) to help more than 300,000 employees.
Employers that are signed up to the scheme are being encouraged to implement the new rates as soon as possible, however it must be done within six months. This timeframe means that all impacted employees should receive the new rate no later than 15 May 2022.
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