10% pay increase for voluntary Real Living Wage workers

A 10% wage increase is scheduled for hundreds of thousands of UK workers whose employers have opted into the optional Real Living Wage scheme.

According to the Living Wage Foundation, the increase in pay from £10.90 to £12 per hour outside of London would be a "lifeline" for low-wage workers.

Employers have the option of paying the real living wage, which is greater than the minimum wage imposed by the government.

There was, however, "a limit" to what businesses could pay, according to a business organisation.

Companies who sign up for the Real Living Wage programme, established by the nonprofit Living Wage Foundation, pledge to pay their employees a wage that corresponds to what the organisation believes individuals should be paid to cover basic expenses.

Following this increase, it is £1.58 higher than the minimum wage set by the government, which is £10.42 per hour for individuals over 23.

If their firm participates in the programme, workers in London will receive a salary increase from £11.95 to £13.15 per hour.

According to the foundation, a full-time worker receiving the new Real Living Wage will make £3,081 more annually than someone on the existing government minimum and an extra £5,323 in London.

According to the organisation, almost 14,000 firms have enrolled, benefiting approximately 460,000 workers.

Well-known companies that pay living wages include Ikea, Lush, and Everton FC. FTSE 100 share index signatories comprise half of the corporations.

However, according to Charles Cotton of the CIPD, the professional association for HR and people development, some firms were opting out of the programme due to a "cost-of-business" crisis.

The other option, he argued, was to invest in technology, goods, marketing, management, and skills to boost productivity; the proceeds would then be used to raise salaries.

(Sources: bbc.co.uk)