Diageo gains living wage accreditation


Global drinks organisation Diageo has been accredited as a living wage employer by the Living Wage Foundation and Scottish accreditation body Poverty Alliance.

Diageo has committed to paying its 5,000 UK-based staff, as well as any third-party contractors, at least the voluntary living wage rate of £8.45 an hour. Diageo has also committed to ensure that its UK apprentices are paid above the living wage rate.

Diageo’s accreditation confirms the organisation as Scotland’s 900th living wage employer. In addition, Diageo’s living wage accreditation also means that 33% of the UK’s FTSE 100 organisations are now living wage employers. Other FTSE 100 organisations that are living wage employers include banking organisations such as Barclays, HSBC, Lloyds Banking Group and the Royal Bank of Scotland, utility providers such as British Gas and National Grid, as well as businesses such as Schroders, Unilever and ITV.

The living wage is an independently set hourly rate of pay that is calculated according to the basic costs of living. Updated annually, it is paid on a voluntary basis by employers. The living wage rate is currently set at £8.45 an hour for employees across the UK, and £9.75 an hour for staff that work in London. The higher London living wage rate reflects the increased living costs associated with residing in the capital.

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The voluntary living wage is distinct from the statutory national living wage, which is paid to employees aged 25 and over. The national living wage rate is currently set at £7.50 an hour.

David Cutter, president of global supply and procurement at Diageo, said: “Creating shared value for our employees, shareholders and communities is at the heart of everything Diageo does as a business. We value all our employees, working both directly and indirectly at our sites across the UK. For this reason, we are pleased to partner with the Living Wage Foundation to become a living wage employer and to support the Scottish government’s campaign to promote the living wage in Scotland.”