On 23 October 2024, the Living Wage Foundation announced the 2024/25 voluntary Living Wage rates. These apply from 01 November 2024 but Living Wage employers have 6 months to implement them, i.e. by 01 May 2025.
The following rates were announced:
- UK Living Wage £12.60 per hour (an increase of £0.60p on the 2023/24 rate)
- Greater London Living Wage £13.85 per hour (an increase of £0.70p on the 2023/24 rate)
(The Greater London rate is applicable to workplaces in all London boroughs).
Action for Bookkeepers
It is necessary for bookkeepers and employers to recognise there is a difference between:
- The Living Wage and London Living Wage which are voluntary that an accredited employer may choose to pay to ‘directly-employed’ staff aged 18 and over. This differs from
- The National Minimum Wage or the National Living Wage which are statutory and all employers must pay workers at least these rates which vary depending on the age of the worker
If an employer is accredited, i.e. they have committed to pay their employees at the higher voluntary rates, they are asked to implement the updated rates as soon as possible or, at least, within 6 months. The Living Wage Foundation announced that accredited employers have until 01 May 2025 to pay at these rates, i.e. 6 months from 01 November 2024.
Building on the voluntary Living Wage, note that Living Wage Employers can also become a Living Pension employer if they commit to a minimum savings level for directly-employed staff (regardless of age and earnings).
