We are thrilled to have gained accreditation under the Scottish Living Wage initiative.
What is the Scottish Living Wage Initiative?
The Scottish Living Wage Accreditation Initiative was established in April 2014 with the aim of increasing the number of employers in Scotland who are recognised for paying their staff the Living Wage. Hosted by The Poverty Alliance, the Initiative works in partnership with the Living Wage Foundation and is funded by the Scottish Government.
How is it different from the government’s ‘national living wage’?
In April 2016 the government introduced a higher minimum wage rate for all staff over 25 years of age inspired by the Living Wage campaign – even calling it the ‘national living wage’.
However, the government’s ‘national living wage’ is not calculated according to what employees and their families need to live.
Instead, it is based on a target to reach 60% of median earnings by 2020. Under current forecasts this means a rise to less than £9 per hour by 2020.
For under 25s, the minimum wage rates also take into account affordability for employers.
The real Living Wage rates are higher because they are independently-calculated based on what people need to get by. That’s why they encourage all employers that can afford to do so to ensure their employees earn a wage that meets the costs of living, not just the government minimum.
The National Minimum Wage (including the “national living wage”) is the legal minimum an employer can pay an employee. It is set by the UK Government.
The current National Minimum Wage is £5.60 per hour for 18-20 year olds, rising to £7.05 per hour for 21-24 year olds, then to the UK Government’s “national living wage” of £7.50 for over 25s. The UK Living Wage is £8.45 per hour.
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