Employee guide to the Living Wage, Living Hours and Living Pension
This page is for employees and contracted workers whose employer is accredited with the Living Wage Foundation. We explain the different types of accreditation and what they mean for you.
If you have concerns that your employer is not compliant, you can report it to us using the form below.
Frequently Asked Questions
What is the Living Wage?
The real Living Wage is the hourly rate employers voluntarily commit to paying their staff. It is independently calculated every year, based on the cost of living.
Current Living Wage rates are: £13.45 per hour (UK) and £14.80 per hour (if you are contracted to work in Greater London).
Annual updates: New rates are announced every October, and employers must update pay to these new rates within 6 months. If you want to know when you will receive the increase to the new real Living Wage rate, please ask your employer for further information.
This is different to the National Living Wage, which all employers are legally obliged to pay. You can see the difference here.
Is Your Employer Accredited?
Check if your employer is accredited by visiting these directories:
Living Wage: What does accreditation mean for you?
Living Wage Employers promise to:
- Pay the real Living Wage to all directly employed staff and regularly contracted staff aged 18+.
- Raise pay to the new Living Wage rate within 6 months of the update (new rates are announced every Autumn).
For third-party contracted staff:
- Includes anyone working 2+ hours a week for 8+ consecutive weeks.
- Employers may take up to 3 years (from the date of accreditation) to adjust pay for contracted staff due to existing legal agreements.
For detailed policies (e.g., travel time, London weighting), visit our FAQs.
Living Hours: What does accreditation mean for you?
Living Hours Employers promise to:
- Pay the real Living Wage (see above).
- All staff earning between 1-1.25x Living Wage (i.e. £13.45 - £16.81 nationally and £14.80-£18.50 in London) should be offered:
- Decent notice periods for shifts: of at least 4 weeks’ notice, with guaranteed payment if shifts are cancelled within this notice period
- The right to a contract that reflects accurate hours worked
- A guaranteed minimum of 16 hours a week (unless the worker requests otherwise)
Third-Party Contracted Staff:
- The same standards apply to anyone contracted to provide a service for 2+ hours a week for 8+ consecutive weeks.
- Employers may take up to 3 years (from the date of accreditation) to adjust conditions for contracted staff due to existing legal agreements.
There is more information here.
Living Pensions: What does accreditation mean for you?
Living Pensions is a savings rate designed to build up a retirement pot based on the real cost of living. The requirements of the Living Pensions scheme are:
- Meet a minimum of 12% contribution, with at least 7% coming from the employer, OR a minimum annual cash amount of £3,150 (with £1,720 coming from the employer). The cash amount is pro-rated for part-time workers.
- Everyone must be given the option to opt-in regardless of age and earnings, even if they are not auto enrolled.
- Contributions must be deducted from the first pound of earnings (this can be phased in over 3 years).
Recognised Service Providers: What does accreditation mean for you?
Recognised Service Providers (RSPs) are required to:
- Pay all directly employed members of staff who are not tied to client contracts, the real Living Wage.
- Pay regularly* sub-contracted staff who are not tied to client contracts the real Living Wage.
- Always offer a real Living Wage bid alongside every market rate submittal to client. This means the client always has the choice to implement the real Living Wage at the point of tender. If a client chooses the Living Wage option, this will be reflected in staff’s pay.
*This applies to contracted staff who work 2+ hours a week, for 8+ consecutive weeks.
**All of the above requirements apply to people aged 18+.
Why don’t RSPs pay everyone the Living Wage?
For many service providers, the client themselves can have a big influence on how much staff can be paid, due to how much they are willing to pay for the service. A business could lose out on a contract if they bid too highly – and this would have a negative impact on staff. So, some service providers are unable to guarantee the Living Wage for all staff due to the client’s influence on pay. Our movement of Recognised Service Providers are gradually helping to raise pay across the industry. Some RSPs have successfully moved 100% of their contracts onto the real Living Wage and are now accredited Living Wage Employers.
My employer is not accredited with the Living Wage Foundation. What can I do?
If your employer is not accredited, then perhaps you can encourage them to sign up!
If you feel able to speak to your managers about becoming a Living Wage employer, we can share resources to help you prepare a case. This section of our website is a good place to start. Contact us here for more information.
One effective way of winning positive change in your workplace is through trade unions. For more information, see the TUC’s website.
Please note that the real Living Wage is not the legal minimum wage (we explain the difference here). If you think your employer is acting illegally, on pay or other employment issues, you should contact ACAS. They can provide advice to employees on all aspects of workplace relations and employment law.
Reporting non-payment of the Living Wage, or not meeting their Living Hours or Pension commitments
If your employer is not paying the real Living Wage, or meeting their Living Hours/Pensions commitments, please report using the form below.
Please review the information above before reporting. We can only act if your employer is accredited with us - please check using the links above.
We will never reveal your identity to your employer.