More than 5,000 people working for nearly 200 real Living Wage Employers in Northern Ireland are set for a vital pay boost, as the real Living Wage rates rise to £13.45 an hour across the UK (85p increase).
Recent research by the Living Wage Foundation shows that as inflation grew over the past year, 4.5m low-paid workers across the UK have struggled to make ends meet, with two in five (42%) having been forced to use foodbanks in the past year, rising to over half (56%) of low-paid workers with dependent children.
Analysis of NISRA figures in 2024 found 20.6% of jobs in Northern Ireland are paid below the real Living Wage - around 224,000,000 jobs.
The real Living Wage is different to the government’s statutory minimum wage rate, which is called the ‘National Living Wage’ for those over the age of 21. The real Living Wage is a higher, voluntary rate that is independently calculated based solely on what is needed to cover living costs and live with stability and security. This includes covering household costs such as rent and food costs bills, childcare and transport, as well as important costs like a warm winter coat for children, or a financial emergency like a broken boiler. The Government’s rate is the legal minimum businesses are required to pay by law.
The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer and is £13.45 an hour across the UK and £14.80 an hour in London. The National Living Wage applies to those over the age of 21 and is worth £12.21 an hour. A full-time worker in Northern Ireland earning the new, real Living Wage will earn £2,418 a year more than a worker earning the current government minimum.
The number of employers signed up to pay the real Living Wage in Northern Ireland has continued to grow. Living Wage Employers commit to paying all their staff, as well as their third-party contractors like cleaners and security guards, at least the real Living Wage.
There are now nearly 200 Living Wage Employers in Northern Ireland, with recent accreditations including CTS Projects Ltd, Ards and North Down Borough Council, Disability Action NI, Wee Chicks Childcare and North Belfast Housing. They join half of the Financial Times Stock Exchange 100 companies including Diageo, household names like Everton FC and IKEA, as well as thousands of small businesses, who are choosing to pay the real Living Wage to provide workers and families with greater security and stability.
Kevin Higgins, Head of Policy, Advice NI, said:
“With rising inflation, we all need a wage that covers life’s essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs. The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of food, energy bills, clothing and other essentials, and to live with stability, security and dignity.
“Despite the challenges businesses face, the Living Wage employer movement continues to grow. These leading employers are showing that paying the real Living Wage has a far-reaching impact on staff, businesses and society.”
“We would encourage businesses to consider becoming real Living Wage Employers, and Living Wage NI is here to support employers through the process.”
Mary McManus, Regional Manager for Living Wage NI, said:
“Since launching in June 2024, Living Wage NI has seen strong interest from local employers to accredit as Living Wage Employers. They understand that ensuring their staff earn enough to have a decent standard of living is an investment that in the long run cuts down on recruitment and training costs. Today’s announcement is good news for workers and good news for the local economy. We know that low-paid workers spend more of their cash in their local economies. Any increase in their spending power will benefit local firms, too.”
Kelly Molloy, CEO of Wee Chicks, a recently accredited Living Wage Employer, said:
“At Wee Chicks, our people are at the heart of everything we do. Paying the real Living Wage is our way of showing that care begins with valuing those who give so much to our children, families, and community every single day.”
Albert Hamilton, Founder and CEO of CARD Group Research & Insight, an accredited Living Wage Employer, said:
“Paying below the real Living Wage is not a cost-saving measure; it is a hidden tax that forces employees to focus on survival instead of success. It erodes morale and fuels staff churn with all of the associated costs. Paying staff a wage that reflects the true cost of living is a smart investment in maintaining a productive and resilient workforce. It’s simply better business.”
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