Leicester City Council is to increase pay for 1,800 employees in line with the voluntary living wage increased rate of £8.75.
The living wage rate was raised on 5 November 2017 to £8.75 an hour for employees working across the UK. In December, approximately 1,800 of the council’s low-paid workers will receive the voluntary pay increase.
The increase will mean full-time staff receive an additional £600 in their pay packet each year and will cost the council approximately £400,000 annually.
For example, school staff, who are currently paid £8.45 per hour, will see their pay rise by 30p per hour.
The living wage is an independently set hourly rate of pay that is calculated according to the basic costs of living. It is paid on a voluntary basis by employers and is updated annually. The living wage rate is currently set at £8.75 an hour for employees working across the UK, and at £10.20 an hour for staff that are based in London. The higher London living wage rate is to reflect the increased living costs associated with residing in the capital.
The voluntary living wage is distinct from the statutory national minimum wage, which is paid to employees aged 25 and over. The national minimum wage rate is currently set at £7.50 an hour.
The council adopted the living wage in April 2013 and became an accredited employer in 2015. It is actively encouraging all of its suppliers to do the same.
Peter Soulsby (pictured), mayor of Leicester, said: “We remain fully committed to the real Living Wage at Leicester City Council. It is is an important part of efforts to tackle low pay in Leicester and I would like to see all local employers adopting it.”