Will Your Pay Rise by 5% in 2025? Check Here to See If You’re Set to Earn the Real Living Wage!

The Real Living Wage continues to shine as a beacon of hope for workers across the UK, with nearly 500,000 employees set to benefit from a 5% pay rise this year. As inflation stabilizes, the initiative brings renewed financial relief to UK workers grappling with rising costs.

What is the Real Living Wage?

The Real Living Wage is a voluntary commitment by over 15,000 businesses to pay employees more than the legal minimum wage. Unlike the National Minimum Wage (NMW) and National Living Wage (NLW), which are mandated by law, the Real Living Wage reflects the cost of living and ensures workers can meet essential expenses.

The latest rates, announced in October, require participating employers to implement the increases by May 1, 2025. This year’s hike sees workers outside London earning £12.60 per hour (up from £12) and London-based workers receiving £13.85 per hour (up from £13.15).

Could your employer be paying you more?

If you’re unsure whether your employer offers the Real Living Wage, the Living Wage Foundation provides an easy-to-use tool to check. Check Here to search for accredited businesses. The platform lists companies like IKEA, Oxfam GB, Aviva, and Lush, all committed to supporting fair pay.

National Minimum Wage vs. Real Living Wage

It’s important to understand the distinction between the National Minimum Wage and the Real Living Wage:

• National Minimum Wage (NMW): Legally mandated pay per hour for workers of school-leaving age (16+). For those under 18, the rate is £6.40 per hour in 2025.
• National Living Wage (NLW): The minimum wage for workers aged 21 and over, currently set at £11.44 per hour. This rate will increase on April 1, 2025.

While both the NMW and NLW are legal requirements, the Real Living Wage is voluntary and consistently higher, reflecting actual living costs.

Who qualifies for the National Minimum Wage?

Most workers, including full-time, part-time, apprentices, and disabled employees, qualify for the NMW. However, exceptions apply to:

• Self-employed individuals.
• Volunteers and voluntary workers.
• Company directors.
• Family members living with their employer performing household chores.
• Au pairs and those on government employment programs.

What’s next for UK workers?

The 5% pay rise under the Real Living Wage marks another step towards financial security for low-paid workers. Employers who go beyond the statutory minimum demonstrate their commitment to addressing the cost of living crisis and supporting their staff’s well-being.

The Workers Union Says…

“The Real Living Wage movement continues to grow, offering hope to thousands more workers who stand to benefit from fair pay practices.”

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