Insurance group Royal London has pledged to give all permanent and fixed-term employees on full-time equivalent (FTE) salaries of less than £40,000 per annum a £1,000 FTE pay increase.
The organisation employs more than 4,000 workers, and the pay rise will take effect from October for around half of its workforce, in addition to its annual salary review in April 2023.
Royal London has made this change in order to help staff deal with rising costs this winter.
The employer also offers various benefits to staff that aim to support their financial wellbeing, including annual bonuses, retail discounts and season ticket loans, as well as an Employee Assistance Programme (EAP), private medical insurance and eye care.
A Royal London spokesperson said: “The increased cost of living is continuing to create uncertainty and worry for everyone, and we are acutely aware that our colleagues are facing their own pressures at home. A key element of our purpose is to help build our customers’ financial resilience but this also extends to that of our colleagues.
“We decided that a permanent increase to base salaries for those earning less than £40,000 is the right action to take, as we feel this better reflects the likelihood that the cost-of-living will remain at higher levels, even when inflation falls back to a more normal rate.”
Royal London is not the only employer to offer a cost-of-living payment to its lowest paid staff, with banking group TSB awarding 4,500 of its employees a £1,000 bonus, and Nationwide Building Society giving more than 11,000 a £1,200 one-off payment.
