London is one of the most exhilarating, exciting and fascinating cities in the world; but London is also one of the most expensive cities in the world. Here at Impact, we believe in fair pay and are committed to the London Living Wage.
This is a topic that often comes up within the recruitment industry, especially for temporary and contract staff.
London Living wage is £10.55 per hour as of the 5th of November, 2018. This is calculated based on the cost of living in London. (don’t get mixed up with Minimum wage, which is £7.83).
London living wage is not a legal minimum amount, but voluntary (as opposed to minimum wage). Employers can choose whether or not they pay it.
The rates are calculated annually by the resolution foundation and overseen by the Living Wage commission, based on the best available evidence about living standards in London. In 2018, over 4,000 employers signed up, including big names such as IKEA, Aviva, Nationwide and Everton FC. 21% of employed London residents were low-paid in 2018- meaning that they earn less than the London Living wage. This represents a 50% increase from the rate in 2008!
We feel strongly about this positive step to fair pay and advise our clients on the London Living Wage when we place temps or contractors with them. We encourage them to pay above.
Impact Director and Head of our Temp Division, Sam Stock says “Paying a living wage is a positive step to improve Londoner’s quality of life, and increasing low-paid workers to London Living wage is an important first step to improving their well-being- but it is also a step towards better team work, service and greater client satisfaction.”
The good news is, our clients feel the same and at the moment 90% of them adhere to the London Living Wage.