TENS of thousands of Scots are set to receive a cost-of-living pay boost as the Real Living Wage is set to increase.
The Real Living Wage differs from the Government’s minimum wage rate, often called the national living wage, and is a higher, voluntary rate that is independently calculated based solely on the actual cost of living.
More than 68,000 people in Scotland working for over 3750 real living wage employers will see their hourly rate rise to £12.60 an hour meaning they will earn £2262 more per year than the national living wage.
Research by the Living Wage Foundation showed that despite inflation easing, many of those working in Britain’s 3.7 million low-paid jobs are still struggling with the impact of years of rising prices causing a cost-of-living crisis.
The research showed 42% of low-paid workers have less than £10 left each week after covering essential expenses, while 39% have used a food bank in the past year, and 28% use one at least once a month.
Deputy First Minister, Kate Forbes (below), said the Scottish Government has welcomed the announcement and that it has championed the real living wage for almost a decade.
She said: “After record-high living costs over the past two years, this will be a welcome boost for thousands of workers across Scotland.
“The Scottish Government has championed the Real Living Wage since 2015, and we have made it a legal requirement for all organisations receiving grant funding from a public body to pay the Real Living Wage. This has enabled Scotland to have the highest proportion of workers being paid the Real Living Wage or higher in the UK.”
The Real Living Wage applies to all workers over the age of 18 working for an employer who pays the rate and is now £12.60 an hour.
In comparison, the national living wage applies to those over the age of 21 and is £11.44 an hour.
Despite the struggling economy, a record number of employers have signed up to pay the real living wage in the last three years, the campaign group said.
This includes extending the rate to third-party contractors, like cleaners and security guards, with one in nine employees in the UK now working for an accredited living wage employer, the group added.
Some household names who have committed to paying their employees a real living wage include First Bus, SSE, Aviva, Ikea, Burberry, and LUSH.
Peter Kelly (below), Poverty Alliance CEO, has called on more employers to commit to paying their workers a living wage.
He said: “We all need an income that is enough to cover our needs and protect us from poverty, but too many workers in Scotland are struggling to stay afloat.
“A just Scotland would see every worker’s wage meet their everyday needs, and employers can play their part by paying the Real Living Wage, which is the only wage rate in the UK based solely on living costs.
“We commend the leadership of more than 3750 accredited Living Wage employers in Scotland that have taken a stand to ensure workers can earn a wage that covers their needs, even when times are tough for many businesses.
“We call on many more employers to pay the Real Living Wage and become accredited.”
More than 50 UK employers who want to ensure their workers never face poverty in retirement are signed up to the Living Wage Foundation’s Living Pension accreditation – 12 of which are based in Scotland.
The Living Pension Employers provides a living pension savings level using either a cash target of £2800 or the percentage of 12%, with a minimum of 7%, or £1630, contribution coming from the employer.
