Number Of Workers Earning Less Than Living Wage On The Rise

Due to figures from think tank only for the last year 20% of the workforce in the UK which is about 4.8m people have claimed they earned below the so-called living wage. This means their number has risen too fast. The Resolution Foundation conducted a research the results of which point out that 25% of women and 15% of men who are employed did not manage to cover their basic needs for living in April 2012. This is the last month the search covered.

Since 2009 the number of employees receiving under the living wage had gone up by 3.4 million.

However, there are many different groups of workers who earn much less than the living wage. The worst results have been accounted for those under the age of 20 who go to work. In 77% of the cases they have received salaries far away from what they had expected. The other risk group is of the people working in restaurants and hotels.

London’s living wage is now £8.55 in London and £7.45 elsewhere.

Matthew Whittaker, report author and senior economist at the Resolution Foundation, said: “For most of the working population real wages have been flat or declining for many years and as a result more and more people have dipped below the level of the living wage.”

He added that all the parties need to think carefully about the proper way which would lead to boost in the rates of pay.In addition may be this should be written into the employment contract.

The answer that came from the government was that they were in fact encouraging all employers to give their workers much more money than the national minimum wage.

The spokesman added:

“Despite being in tough times, this Government is doing absolutely everything it can to help people on low pay with the cost of living.”

 

A Call to Employers – Do Consider Paying the Living Wage

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.