The accounting company KPMG carried out a research, which revealed that 4.82 million people, working in the UK are paid less than the estimated minimum living wage, engaged with the quality of life. Due to this fact employers are advised to think about a possible wage increase in the near future.
The living wage is different than the minimum wage, which is required by law. It is a higher wage rate, which takes into consideration the general cost of living in the UK. this rate is different in London and the other parts of the UK, as in London it is 8.30, while for the rest of he UK it is less – 7.30.
The living wage is not a legal requirement, so employers are not obliged to pay it. However, those , who comply can apply for license to bear the Living Wage employer Mark. Up to now, The Living Wage Foundation has accredited almost 100 UK employers with the mark.
However, the research shows that 1 in 5 workers is learning much below the living wage, with bar staff, waiting staff and kitchen staff being at the bottom of the list. It turned out that only 10% of the people, working in this industry earn above the living wage rate
The director of the Living Wage Foundation Rhys Moore said that earning the living wage “makes a huge difference to the quality of life of thousands of cleaners, caterers and security staff across the country.”
Marianne Fallon, head of corporate affairs at KPMG, added “Paying a living wage makes a huge difference to the individuals and their families and yet does not actually cost an employer much more.”
In addition, she mentioned the benefits businesses can get if paying the living wage. “We have found that the improved motivation and performance, and the lower leaver and absentee rate among staff in receipt of a living wage, means that the cost is offset.”
On the 4th of November begins the Living Wage Week, which is dedicated to call upon employers to increase the employees` wages for a better standard of life.
Together with paying the living wage, an employer will need a suitable employment contract for each of the employees.