Real living wage increases to £9.90

16 November 2021


The Living Wage Foundation have announced a rise to the Real Living Wage.  From 15 November 2021 the real living wage rates will be £9.90 and £11.05 in London.

Confusingly this is not the National Living Wage but is a separate recommendation which has no legal obligation. 

Whilst there is no statutory requirement for employers to pay the Real Living Wage, the Living Wage Foundation are encouraging all employers to pay their workers in line with the new rate to ‘ensure their employees earn a wage that meets the costs of living, not just the government minimum’

Employers should note that whilst there is encouragement from the Foundation to pay the new higher rate, there is no requirement for them to do so.  Compliance with the National Minimum Wage/National Living Wage (‘NMW/NLW’) however is mandatory.

HMRC’s guidance on NMW can be found here.

Aspire Comment:

Whilst the increase will be encouraging for workers whose employers pay the National Living Wage, it will present further cost implications for employers who guarantee to pay at least this rate and they will need to factor in the increased cost of labour supply.

It is essential that all employers are compliant with the NMW/NLW requirements. If you are concerned about your compliance with the NLW/NMW, please contact Aspire on 0121 445 6178 or email to discuss how we can identify any risk areas within your company.