The Living Wage rate for workers in London is to increase by 25p an hour to £8.55, the capital's mayor announced today.
The minimum wage which companies must pay their staff by law is £6.19 an hour. But the living wage is a guideline amount that's calculated to ensure a basic standard of living
Boris Johnson said the new rate could be worth £4.5 million a year for lower-paid workers.
The Living Wage rate outside London will also rise by 25p to £7.45.
The current rates are £8.30 an hour in London and £7.20 in the rest of the country, compared with the national minimum wage of £6.19 for adults.
It is important to remember, however, that the living wage is an unofficial benchmark, not a legally enforceable minimum level of pay, like the national minimum wage.
– Boris Johnson, Mayor of London
By building motivated, dedicated workforces, the Living Wage helps businesses to boost the bottom line and ensures that hard-working people who contribute to London's success can enjoy a decent standard of living."