No, employer contributions to pensions cannot form part of the Living Wage payment. Only guaranteed non-deferred payments can be included. A pension is a deferred payment and so does not help the employee with the cost of living at the current time.
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.
Everyone over 18 must be paid the Living Wage.
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 joined the Living Wage team in 2014 and has a background in fashion design. Before joining the Living Wage Foundation Amy was part of Citizens UK, campaigning for the Living Wage in Nottingham. She studied Clothing Design and Manufacture at Manchester Metropolitan University.
Amy oversees the team focusing on improving pay for people in low paying industries including retail, hospitality and the gig economy. She is also part of the team working on the Living Wage Foundation's new project about Good Work and leads the Foundations' consultancy work.
The Living Wage applies to everyone over the age of 18
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.
The rates are announced on Monday of the first week of November each year. Employers should implement the rise as soon as possible and within 6 months. All employees should be receiving the new 2017/18 rates by 6th May 2018.