By Priya Raman, HR Briefing

The real Living Wage has risen across the UK, putting every employer accredited under the Living Wage Foundation scheme on notice to adjust pay for affected workers.

The Foundation announced the increase, as covered by Employee Benefits. The headline confirms a rise for both London and the rest of the UK, with specific hourly figures and the effective date sitting in the full report.

What does the real Living Wage cover?

It's a voluntary rate the Foundation calculates each year, based on the cost of living - housing, childcare, food and transport. The rate sits above the statutory National Living Wage the government sets each April. Once an employer signs the Foundation's accreditation agreement, the higher rate applies to every worker regardless of age or role.

What's required of accredited employers?

HR and payroll leads must update pay bands and apply the new floor from the effective date. Workers earning at or near the previous rate move up automatically; for staff paid just above the new floor, internal relativities may need recalibration. Contracts and payroll-system pay tables both need updating, and HR will want to brief line managers before the change lands in payslips. Budget owners should also revise cost projections, since uplifts apply across the workforce, not just at the floor.

Why does the timing matter?

The Foundation usually announces revised rates in late autumn, with the new floor taking effect within weeks. That puts this rise in the middle of most employers' year-end compensation reviews. HR teams still finalising pay budgets now have a third reference point to fold in, alongside the statutory National Living Wage and any internal minimum the employer sets.

How does it differ from the National Living Wage?

The government-set National Living Wage is a legal minimum for most workers aged 21 and over. The Foundation's real Living Wage is voluntary and sits higher. Accredited employers must pay the higher rate; non-accredited employers are only obliged to meet the statutory floor. The two rates rise on different timelines and through different processes, which means HR teams track two separate announcements each year.

Why do employers sign up?

Employers use accreditation as a recruitment and retention signal, particularly in lower-paid sectors where pay differentiation matters. FTSE-listed companies, public-sector bodies and a long tail of SMEs carry the mark. For HR, the practical benefit is clearer external messaging on pay fairness; the practical cost is the obligation to maintain the rate and pass on future rises.

What's the implementation checklist for HR?

• Apply the new floor to every worker, not just those previously on the minimum.
• Update payroll-system pay tables and run a parallel test before go-live.
• Review internal pay ratios for staff paid just above the new floor.
• Brief line managers on the change and any knock-on questions.
• Update offer letters and contracts where pay is referenced.

What's next?

The next scheduled pay-floor milestone will be the spring National Living Wage uprating, which resets the statutory minimum for the new tax year. Accredited employers should expect the Foundation to publish the full rate card imminently, and payroll teams should plan to have systems updated within the standard implementation window.