How does it differ from other wage rates?
The Real Living Wage and London Living Wage are voluntary wage rates, calculated by the Living Wage Foundation, based on a basket of household goods and services.
The National Living Wage is a statutory rate for those 23 and over. This is calculated by a % of median earnings, rather than reflecting the real cost of living. It is national and there is no London weighting.
The National Minimum Wage is a statutory rate for those of at least school-leaving age.
The London Living Wage takes into account the higher housing and childcare costs in the capital, to determine a real wage on which people can get by. This is why we encourage all employers that can afford to do so to ensure their employees earn a wage that meets the cost of living, not just the government minimum.
Why pay the London Living Wage?
There are real benefits for businesses paying the London Living Wage.
In a study by the Living Wage Foundation with Cardiff Business School, nine out of ten businesses paying the London Living Wage say it has improved its reputation as an employer, and 63% believe it has helped differentiate them from competitors.
It is also a significant aid to recruitment, retention, and relations between employees.
Of businesses paying the rate, 63% say it has improved relations between managers and workers, 60% say it has improved recruitment of employees receiving the London Living Wage, and 58% say it has improved retention, motivation and commitment of employees receiving the London Living Wage. A further 55% say it has improved the quality of job applicants and made the organisation more attractive to graduates.
So, with many businesses struggling to recruit whilst skills gaps prevail, paying the London Living Wage is proven to give businesses an advantage.
