What is the Living Wage as an annual salary?

Fri, 10/31/2014 - 18:45 -- Sarah Vero

We don’t publish the Living Wage as an annual salary as the requirement is that the Living Wage is paid for each hour worked.

You can work out the annual salary by calculating LW x hours worked per week x 52.

For example the UK Living Wage as an annual salary might be £8.75 x 37.5 x 52 = £17,062.50 and the London Living Wage as an annual salary might be £10.20 x 37.5 x 52 = £19,890.

Where a salary calculation is used accredited employers must also ensure that they pay the Living Wage for each hour of over-time worked.

Can bonuses be included in the Living Wage rate?

Fri, 10/31/2014 - 18:39 -- Sarah Vero

Only guaranteed non-deferred payments can be included in the Living Wage rate.

This means guaranteed bonus payments can be included. Examples of guaranteed bonuses are a time away from home allowance, or an inner city weighting allowance. Non-guaranteed payments such as productivity or sales related bonuses cannot be included, except in specific cases where the hourly wage of the worker is guaranteed.

What about volunteers, apprentices and interns?

Fri, 10/31/2014 - 18:30 -- Sarah Vero

Living Wage accreditation does not require employers to pay the Living Wage to volunteers, apprentices or interns.


Good volunteering programmes can both enrich an organisation making the opportunity available and the individual donating their time (unpaid) as charitable giving. We recommend that all of our employers adhere to government best practice guidance when creating volunteer placements.


Amy Hulme

Amy joined the Living Wage team in August 2014. She first came across the Foundation through her yearlong involvement in the Nottingham Living Wage Campaign. She has a background in clothing design and manufacture, and worked in fashion design for a number of years. Amy designed and created a collection for Cardiff’s very first Fashion Week. Experiencing Britain's clothing manufacturing industry first hand made Amy acutely aware of the need for the Living Wage.

Who does the Living Wage apply to?

Thu, 10/30/2014 - 12:50 -- Sarah Vero

The Living Wage applies to all directly employed staff over the age of 18 regardless of the amount of hours they work.

For third party contractors the exact definition is those who work regularly, for 2 or more hours a day, in any day of the week, for 8 or more consecutive weeks of the year.

The Living Wage does not apply to contractors that supply your organisation with products e.g. stationary suppliers.

We recommend that you communicate your Living Wage commitment to everyone you do business with, and encourage them to consider implementing the Living Wage.