We are now a Real Living Wage employer
Edge45® is proud to announce that it is now a Real Living Wage employer.
“But the Living Wage is compulsory” we hear you cry… well, yes that is partly true:
- The compulsory ‘National Living Wage’ was announced by George Osborne in his 2015 budget, and clocks in at £7.20 per hour at the time of writing
- The voluntary ‘Real Living Wage’ is the result of a movement by the Living Wage Foundation and is the amount needed to live comfortably; it clocks in at £8.45 per hour or £9.75 per hour in London
We have decided to become a real living wage employer because, quite frankly, it is the right thing to do. And we are in good company: there are over 2900 employers making this choice to pay a fair wage including big household brands such as, Oxfam, Nestle, Ikea, Aviva and Oliver Bonas.
What is the Real Living Wage?
Back in 2001 in London a movement began, campaigning for more realistic rates of pay to be set in response to many families struggling to manage financially, and staying trapped in working poverty. The movement spread nationally as more and more people bought into the whole notion that wages needed to be set at a rate calculated on what employees and their families need to live on.
The Centre for Research in Social Policy, funded by the Joseph Rowntree Foundation, set to work on discovering what a real living wage should be. The research calculated rates based on what people need to live, rather than just exist. The real living wage has two rates, one for everyone over 18 years old and a London rate. These two rates acknowledge that not only does everything cost the same whatever your age but also that living costs in the capital are considerably higher.
The compulsory National Living Wage rates are based on a rather confusing paradigm. The rate for 21-24 year olds has been negotiated from recommendations from business and unions while the higher rate for people over 25 years old and is set as a percentage of the median national income, currently 55% with a target for this to rise to 60% by the year 2020. The compulsory living wage has no London weighting applied, the rates are fixed at one amount nationally.
Employers choose to pay the ‘real’ living wage on a completely voluntary basis. Independent research has proven that paying a real living wage is good for individuals, business and society. An independent study found that paying the real living wage increased the retention of staff, absenteeism fell by 25 %, employees were happier at work and 50% of employees felt more willing to implement positive changes in their work practices.
This video from the Living Wage Foundation explains the differences: