The Calculation

  • Only the real Living Wage rates are independently-calculated based on what employees and their families need to live. 
  • The London Living Wage is currently £9.75 per hour. This covers all boroughs in Greater London.
  • The UK Living Wage for outside of London is currently £8.45 per hour.
  • The rates are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence about living standards in London and the UK.
  • Before 2016 the London Living Wage was calculated by the Greater London Authority and the UK rate was calculated by the Centre for Research in Social Policy at Loughborough University.
  • You can view the report which explains how the real Living Wage is calculated here.

The independently-calculated Living Wage rates are announced simultaneously in the first week of November of each year, during Living Wage Week.

Living Wage employers should implement the new rates as soon as possible and within six months of the annual announcement.

Historical data

National

Year

National Min Wage*

UK Living Wage**

Difference

2011

6.08

7.20

1.12

2012

6.19

7.45

1.26

2013

6.31

7.65

1.34

2014

6.50

7.85

1.35

2015

6.70 / 7.20

8.25

1.55

2016

6.95 / 7.20

8.45

1.50

 * set by the Government funded Low Pay Commission
** independently-calculated by the Centre for Research in Social Policy from 2011 and the Resolution Foundation from 2016, overseen by the Living Wage Commission.

London

Year

National Min Wage*

London Living Wage**

Difference

2003

4.5

6.40

1.90

2004

4.85

6.50

1.65

2005

5.05

6.70

1.65

2006

5.35

7.05

1.70

2007

5.52

7.20

1.68

2008

5.73

7.45

1.72

2009

5.80

7.60

1.80

2010

5.93

7.85

1.92

2011

6.08

8.30

2.22

2012

6.19

8.55

2.36

2013

6.31

8.80

2.49

2014

6.50

9.15

2.65

2015

6.70 / 7.20

9.40

2.70

2016 6.95 / 7.20 9.75 2.80

* set by the Government funded Low Pay Commission
** independently-calculated by the GLA from 2005 and the Resolution Foundation from 2016, overseen by the Living Wage Commission