Living Wage Week: What Does It Mean To Pay A Living Wage?

This November (4-10th) we are celebrating Living Wage Week, an opportunity to shine a light on the benefits of being an accredited Living Wage Employer. But have you ever wondered what exactly the Living Wage is, and how it’s calculated?

Image: Canva

What is the Living Wage?

The current living wage for 2024-2025 stands at £12.60, with the London Living Wage at £13.85. This most recent wage was announced on the 23rd of October and allows employers 6 months to implement it. 

This Living Wage is calculated entirely independently of the UK Government’s minimum wage and goes through three stages to reach the recommended level. The Living Wage is based on the current cost of living and aims to allow employees to “live a dignified life” (The Living Wage Foundation).

The hourly rate is calculated based on the cost of a basket of goods and services, assembled by representatives from a range of households. Other expenses are also considered, along with relevant taxes and benefits that people are paying. Finally, The Living Wage Commission's expert group decide on the definitive number. 

Image: Canva

The resulting wage must then be adhered to by all those with Living Wage Employer Accreditation. Some of these organisations include Aviva Insurance, Burberry, Ikea, Nationwide, Oxfam, and the University of Oxford. 

Why Does it Matter?

Since the Living Wage Foundation first set up the accreditation in 2016, both employers and their workers have benefitted from opting in, with employees citing improved health, reduced stress, and better relationships, as well as the boosted pay check.

While the benefits for employees may seem more obvious, employers benefit greatly from the Living Wage Accreditation as well. Many organisations have seen increased profits due to improved morale and productivity. They also noted an improvement in the quality of recruits they attracted, and that staff retention increased, among other benefits.

Paying people a fair and decent wage is not only a core pillar of running an ethical company, it also has knock on effects on productivity and profit, meaning it’s surely a no brainer!

Image: Y.O.U and Living Wage

Why is it Important to Us?

Here at Y.O.U, being a Living Wage Employer is a key aspect of running our business, and this Living Wage Week we will be taking the opportunity to draw attention to the many benefits of the scheme, as well as highlighting the 12.9% of employees still paid below the real Living Wage, These workers are the people most likely to feel the effects of the current cost of living crisis. 

The Oxford Living Wage

Oxford City Council encourages all Oxfordshire based organisations to pay the Oxford Living Wage, which sits above the national rate at 95% of the London Living Wage, as determined by the Living Wage Foundation. This recognises that Oxford is an expensive city to live in, which is why we pay at least this amount to all our Oxford team! 

This November, join us in celebrating the Living Wage employers of Oxford, which currently stands at around 120 in the city, and 270 in wider Oxfordshire. As well as those up and down the country committed to ensuring all employees are empowered to live a dignified life.

Find out more about our other commitments to ethical business below:

• The Impact of Buying from Female Led Businesses
• The Principles Behind our B Corp Certification
• And Explore some other Fantastic Ethical Businesses Here