Almost half a million workers will get a pay rise when the Real Living Wage increases by 60p an hour (70p for workers in London).
The voluntary rate will now be £12.60 an hour (£13.85 in London).
Currently, the statutory minimum amount someone should be paid (called the National Living Wage) is £11.44 for workers over 21 and £8.60 for 18 to 20-year-olds.
But the Real Living Wage is voluntary, and calculated based on the cost of living by the Living Wage Foundation. It is currently paid by 15,000 UK businesses, including IKEA, Lush, and Liverpool and Chelsea football clubs.
The latest rise means a full-time worker will earn £2,262 more a year than someone on the current government minimum, according to the Living Wage Foundation.
Employers who are signed up to pay this real living wage have until 1 May to raise their rates, but they are encouraged to start paying it as soon as possible.
Katherine Chapman, director of the Living Wage Foundation, said: “The Real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.
“It’s a challenging time for businesses too, which is why it is so encouraging to see the living wage movement continue to grow at pace.
“This year we reached the major milestone of 15,000 accredited employers, with half of them signing up since 2021.”
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