Living wage increased — costs and benefits to employers

By Aidan McGuire

The UK’s living wage recently increased by 20p to £7.65 an hour outside of London and by 25p to £8.80 per hour in London. This equates to a pay rise of more than £450 for Londoners working full time.

While this is great news for those receiving the living wage, how does it affect living wage employers and the companies who contract with them?

The living wage, promoted by the Living Wage Foundation, is an hourly rate calculated with reference to the basic cost of living, the aim of which is to pay full-time workers enough to lead a ‘decent life’ without having to hold down multiple jobs in order to buy food and pay rent. The amount is far higher than the national minimum wage, currently set at £6.31 for those aged over 21, and the recent increase shows that the difference between the two is growing…

If you are registered and logged in to the site, click on the link below to read the Shoosmiths briefing. If not, please register or sign in with your details below.

Briefings from Shoosmiths

View more briefings from Shoosmiths

Analysis from The Lawyer

  • Hester: declined bonus worth almost £1m

    Pay checks

    Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future

  • high street 150

    Focus: Alternative business structures - Law and new order

    There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…

Overview

2 Colmore Square
38 Colmore Circus Queensway
Birmingham
B4 6BJ
UK
http://www.shoosmiths.co.uk

Turnover (£m): 87.00
No. of Lawyers: 373