Supporting Real Living Wage Implementation: How SD Worx Can Help

The Real Living Wage is becoming an increasingly important focus for businesses aiming to support their employees and foster a positive workplace culture. Implementing this wage structure ensures employees earn a fair income that reflects the true cost of living, but navigating the complexities of compliance can be a challenge.

The Calculation

• The UK Living Wage for outside of London is currently £12.60 per hour.
• The London Living Wage is currently £13.85 per hour. This covers all boroughs in Greater London.
• 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 and the UK.
• The basket of goods draws on the Minimum Income Standard to identify everyday living costs through public consensus. 
• Before 2016 the London Living Wage was calculated by the Greater London Authority and the UK rate was calculated by the Centre for Research in Social Policy at Loughborough University.

The real Living Wage is the only wage rate in the UK based on the cost of living. It is voluntarily paid by over 15,000 businesses that believe their staff deserve a wage that meets everyday needs, such as the weekly shop or an unexpected trip to the dentist.

Thanks to the Living Wage campaign, over 460,000 employees have received a pay rise. The campaign enjoys cross-party support and has accredited a wide range of employers, including half of the FTSE 100 and well-known names like Nationwide, Google, LUSH, Everton FC, and Chelsea FC, as well as thousands of SMEs.

The Living Wage rates for 2024-25 were announced on 23rd October. Employers have until 1st May 2025 to implement these new rates.

The SD Worx UK payroll engine can support the automated application of the real Living Wage.

An employer can confirm they are a living wage employer with the automated application of rates and associated rate rules that automatically uplift on the employers chosen application date.

Implementing the Real Living Wage can involve payroll adjustments, policy updates, and robust communication with employees. At SD Worx, we simplify this process by offering automated updates of Living Wage and London Living Wage for employers who join the service. Associated alternate rates can also be configured with rate rules. 

For implementing living wage options, please get in touch with us.

The SD Worx Academy offers an interactive training course on the Real Living Wage, learn more here: The Real Living Wage | SD Worx Academy