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Home , Living wage, Living Wage Foundation

LIVING FOR THE REAL COST OF LIVING WHAT IS THE ? WITH THANKS TO OUR The Living Wage is an hourly rate of pay, independently PRINCIPAL PARTNERS calculated each year based on the real cost of living in the UK and London.

In 2001 families came together and started a campaign to be paid a real Living Wage. Since then hundreds of thousands of families have benefited and been able to earn a wage they can live on. • The real Living Wage is Thousands of employers choose independently-calculated based on to go further than the government what employees and their families minimum and voluntarily pay need to live. the real Living Wage to all of their staff including their contracted • That is why it is higher than the staff. This has meant a pay rise for . over 150,000 employees and their • Employers voluntarily choose to families. pay it, changing people’s lives right The now. celebrates employers that sign • The real Living Wage includes a up for accreditation by awarding UK rate and a separate London rate them the mark that reflects the higher costs of of a responsible living in the capital. employer. • It applies to all workers over 18. WHAT ARE THE BUSINESS BENEFITS? WHAT HAS PAYING THE LIVING WAGE DONE FOR YOUR BUSINESS?

We think it’s the right thing to do, 64% say it helps for your employees and for differentiate themselves your organisation. from others in their industry. Paying the Living Wage can have of consumers think that positive effects on staff wellbeing 85% companies that can afford to do and team morale. so should voluntarily pay the Employers have told us it can mean Living Wage. increased productivity, reduced absenteeism, better More than 80% of employers and retention, improved quality of believe that the Living Wage has work, and an increased consumer enhanced the quality of the work of awareness of an organisation’s their staff, while absenteeism has ethical credentials. fallen by approximately 25%.

2/3 of employers report a significant impact on recruitment and retention within their organisation. AVI VA BURBERRY Paying the Living Wage makes absolute We were delighted to be the first luxury sense to us as an organisation – it’s retailer and manufacturer to gain full UK part of our aim of being an employer Living Wage accreditation not just for of choice which helps us to protect the directly employed staff but for all third long term success of our business. By party employees in the UK as well. paying a fair wage we are able to We are very proud of this achievement as attract and keep the best people. we believe that all our employees should Aviva is proud of its support of the be treated fairly and in accordance with Living Wage Foundation. our ethical trading guidelines and pay is a significant part of that. MARIE SIGSWORTH GROUP CR DIRECTOR CHRISTOPHER BAILEY CEO

JOSEPH ROWNTREE IKEA FOUNDATION As a values-driven business, IKEA’s vision is to ‘create a better everyday life for the Our Living Wage movement is made At the Joseph Rowntree Foundation and Joseph Rowntree Trust we want many people’. This includes our co-workers WHO ELSE up of a wide range of businesses lasting change for people and places in as much as our customers. We believe in and organisations in every type , communities where everyone paying a meaningful wage for all of our of sector. We have a butcher, a can thrive and a more equal society. We co-workers and making a positive impact PAYS THE baker and a candlestick maker as think it’s vital that we practice what we on their lives, irrelevant of their position, age or location. At IKEA, we are proud to well as a large number of FTSE 100 preach as an employer. Our commitment to paying the Living Wage makes complete pay the real Living Wage and view it as companies and household names LIVING sense to us, not just because it’s the right a worthwhile investment in our people. like; IKEA, Nationwide, Aviva, thing to do but because we also believe They are our most valuable asset, and we Everton and Chelsea Football that staff who are valued through receiving believe that having happy co-workers will WAGE? Clubs, Majestic Wine, LUSH, the the Living Wage are more engaged and ultimately lead to our customers receiving a great experience when they shop with us. House of Commons and many productive. As a large company, we also want to share more. SHAUN RAFFERTY our positive experiences and encourage DIRECTOR OF CENTRAL SERVICES other businesses and organisations in the UK to become real Living Wage employers.

PERNILLE HAGILD COUNTRY HR MANAGER WHO SHOULD RECEIVE THE LIVING WAGE?

The campaign for a real Living who work for you for two or more Wage began in East London, where hours a week, for eight consecutive cleaners and other low-paid weeks are paid the Living Wage, or workers were working in the offices that you have a plan in place for HOW of city firms and banks, employed this. This generally includes your DO I BECOME through outsourced contracts. cleaners, security and long term They were having to work two or temporary workers. A LIVING WAGE three minimum wage but still struggling to make ends meet. The first step is finding out from EMPLOYER? your supplier or building manager if The campaign called on businesses the workers are paid the Living Wage to recognise the important role and explaining your commitment as of these ‘invisible’ workers within a Living Wage Employer. The Living PAY THE REAL LIVING WAGE HAVE A PLAN their companies and pay them a Wage Foundation has template TO ALL YOUR TO PAY YOUR real Living Wage. Since then, not letters and can help you with this DIRECTLY CONTRACTORS outsourcing low pay has been a key negotiation. EMPLOYED A LIVING WAGE STAFF commitment when becoming an accredited Living Wage Employer. If this is not possible immediately, or you need to wait for existing The Living Wage applies to all contracts to end, we ask you to COMPLETE THE directly employed staff over the commit to target dates for these APPLICATION age of 18 regardless of the amount changes called ‘milestones’ and FORM ONLINE of hours they work. At the very these are built into your license minimum, we also ask you to ensure agreement. Please contact us for that any third party contracted staff further guidance.

www.livingwage.org.uk/become-a-living-wage-employer WHY PAY THE REAL LIVING WAGE? WHAT ARE

“SINCE I STARTED BEING PAID THE LIVING WAGE I HAVEN’T HAD TO WORRY THE BENEFITS ABOUT IF I CAN PAY THE BILLS AND MORE IMPORTANTLY THAN THAT, I GET TO SPEND TIME EVERYDAY WITH MY MUM AND DAUGHTER AND I’M OF BECOMING NOT FALLING ASLEEP ON THE SOFA AS SOON AS I GET IN. I EAT BETTER, I SLEEP BETTER AND I’M MUCH LESS ACCREDITED? STRESSED.”

LINDA CARER Accredited employers display the Living Wage Employer Mark on their materials and in their buildings. DO YOU KNOW THE • We will provide you with • You will be included in the DIFFERENCE IT MAKES? guidance on paying the Living publicly available list of Living Wage, including best practice Wage Employers, meaning on how to implement the rate that consumers, prospective increases and work with third party employees, or grant makers can organisations. easily find you. “Spending more quality time “Not having to worry • We will celebrate your • You will become part of a thriving about affording with my children” “Saving a little for accreditation and work with you on network of UK employers that the basics” an emergency or publicity and media. We will also support and promote the a rainy day” keep you up to date with news Living Wage. about the Living Wage campaign, and the rates. FAQS

What about apprentices and interns? When are the rates announced and What is the accreditation process? We recommend that you communicate your when do I have to implement? Living Wage commitment to everyone you The accreditation is a signed licence Statutory apprentice are lower than do business with, and encourage them to The rates are announced on Monday of between the Foundation and the employer. the minimum wage as a contribution to the consider implementing the Living Wage. the first week of November each year. In order to receive a licence and become cost of , particularly in the earlier Employers should implement the rise as accredited please fill in an enquiry form stages where apprentices may spend more soon as possible and within 6 months. All What about third party at www.livingwage.org.uk/become-a- time training than working. For the same employees should receive the new rate by contracted staff? living-wage-employer reason we do not require apprentices to be 1st May the following year. In order to be accredited an employer paid the Living Wage. However, it is good We will send you a link to an online licence must pay all directly employed staff the practice to ensure pay rises over the course Where does the London Living form and a guide to implementing the Living Wage and have an agreed plan in of the , and many accredited Wage rate need to apply? Living Wage. Once you have ensured your place for third party contracted staff such employers have chosen to extend the full The London rate is calculated annually by organisation satisfies the requirements as contracted catering, cleaning, security, Living Wage to apprentices. the Resolution Foundation and overseen please complete and submit the online parks or ground staff. Where contracted by the Living Wage Commission, based form. Please note that this will require an staff cannot be moved onto the Living Wage ‘Intern’ is not a recognised legal term on the best available evidence about online signature. immediately, organisations can choose and some unpaid interns may actually living standards in the capital. It covers to roll out the Living Wage across third be workers and therefore entitled to the workplaces in all boroughs in Greater When we receive your licence and are sure party contracts over time, as the contracts minimum wage. Employers using interns London. You can find out if your workplace you understand the requirements of being come up for renewal. This is called should have an internal policy statement postcode is in a London Borough here: a Living Wage Employer, we will process phased implementation. The contracts and follow the government’s best practice your accreditation. We aim to do this within www.gov.uk/find-local-council are included in the licence agreement as guidance relating to the minimum wage, ten working days, but occasionally the ‘milestones’. The Foundation will check work experience and . volume of accreditations means this may How much does it cost to in with you periodically to ensure the be accredited? take us slightly longer. You will then receive milestones are on track. What is phased implementation? The cost varies according to the size of your a confirmation email welcoming you to our In order to be accredited an employer organisation, starting at £60 per year for network, along with a copy of our logo to What about self-employed you must pay all directly employed staff those with fewer than 10 employees. For use and other materials to celebrate your workers? the Living Wage and have an agreed plan full details of the costs please contact us commitment. in place for third party contracted staff via the enquiry form at For the purposes of Living Wage accreditation self-employed workers such as contracted catering, cleaning, www.livingwage.org.uk/become-a- Who does the Living Wage apply to? are treated the same as sub-contracted security, parks or ground staff. Phased living-wage-employer The Living Wage applies to all directly workers. This means that if they work on implementation means that the Living employed staff over the age of 18 regardless your premises for more than two hours for Wage is rolled out across third party How long does it take to be of the number of hours they work. contracts over time, as the contracts accredited? eight consecutive weeks they must be paid come up for renewal. These contracts For third party contractors the exact the Living Wage. It will vary according to the size of your are included in the licence agreement as definition is those who work regularly on organisation and the types of contracts This also applies to workers and ‘milestones’. The Foundation will check your premises, or premises necessary to the you have. Some employers can complete contractors who do not have a fixed place in with you periodically to ensure the work being carried out, for 2 or more hours their application form straight away and of work but are part of the core workforce, milestones are on track. a day, in any day of the week, for 8 or more we will aim to process their accreditation such as couriers in a delivery company or consecutive weeks of the year. within ten working days. Others may have home care workers. Don’t see the information you need here? Visit the FAQs page on our website for a project of work to do to identify which The Living Wage does not apply to more information: contracts are relevant and when they are contractors that supply your organisation www.livingwage.org.uk/faqs due for renewal. Large organisations can with products e.g. stationary suppliers. often be accredited within 6 months. FAQS Living Wage Foundation 136 Cavell St London E1 2JA 020 7043 9881 www.livingwage.org.uk @LivingWageUK Citzens UK Charity no. 1107264 Powered by: