Employees working for companies under the Living Wage Foundation are set to see their ‘Living Wage’ rates rise to 10 pound 90 pence an hour across the UK and 11 pound 95 pence in London.
The move will be applicable to almost 400,000 people working for over 11,000 companies linked to the foundation in what is set to be the largest year-on-year rise at 10.1 percent.
The increase comes in recognition of the sharp increase in living costs over the past year in the UK, with the final rates independently calculated based on what people currently need to live.
According to the organisation, a full-time worker earning the new Living Wage would be earning 2,730 pounds more a year than a worker earning the current government minimum, which does not follow an independent review.
The Living Wage Foundation has seen its employer membership grow over the past two years, with the likes of Burberry, Lush and Aviva making up its expanding portfolio of partners.
Research by the Cardiff Business School has found that one in 10 employees are now working for an employer under the Living Wage organisation.
“We are facing unprecedented challenges with the cost-of-living crisis, but businesses continue to step up and support workers by signing up to the Living Wage in record numbers,” said Katherine Chapman, the foundation’s director, in a release.
Chapman added: “We know that the Living Wage is good for employers as well as workers, that’s why the real Living Wage must continue to be at the heart of solutions to tackle the cost-of-living crisis.”