Living wage increase – PwC comments

Published at 12:31 PM on 03 November 2014

The UK Living Wage has today been raised from £7.65 to £7.85 and from £8.80 to £9.15 in London, contrasting with the National Minimum Wage of £6.50.

PwC started paying the Living Wage in London in 2006 and across the rest of the UK from 2008, and supports today’s rise.

John Harding, pay expert and partner at PwC, said:

“It’s positive that there are now over 1,000 voluntarily accredited employers, more than double the number this time last year. We expect this momentum to only continue as more and more employers are considering implementing a living wage. This should also provide a boost to the Government’s tax receipts as income tax receipts have barely changed compared to last year despite higher levels of employment.

“There are many considerations for employers around cost, eligibility, communications, an added layer of pay governance, and how to manage the pay differences for those already paid at or around the Living Wage. For many companies it is a difficult balance to reflect their values and look after their employees, while emerging from the recession and looking to compete internationally.

“We should widen the narrow focus from just hourly rate to employees’ total reward package that may include bonus, commission, pensions and other benefits. Employers should make sure employees understand all elements of their pay and not just a narrowly defined hourly rate. Total reward statements are an increasingly popular tool to engage employees and to help them understand and take advantage of their entire package, and are particularly growing in popularity for small to medium sized businesses.”

Ends

Notes to Editor:

1. For more information on PwC's views on the living wage, please visit: http://lnkd.in/d-qQz3e

About PwC

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

2014 PricewaterhouseCoopers. All rights reserved.


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PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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