The Living Wage is calculated each year based on evidence regarding the everyday cost of living in London and the UK.
The new rates are announced each year on the first Monday in November. From their announcement, employers have up to six months to implement the new rates, although they are encouraged to increase wages as soon as possible.
The 2020/21 rates were announced in November 2020 and needed to be in force by May 2021.
London Living Wage | UK Living Wage | |
2014/15 | £9.15 an hour | £7.85 an hour |
2015/16 | £9.40 an hour | £8.25 an hour |
2016/17 | £9.75 an hour | £8.45 an hour |
2017/18 | £10.20 an hour | £8.75 an hour |
2018/19 | £10.55 an hour | £9.00 an hour |
2019/20 | £10.75 an hour | £9.30 an hour |
2020/21 | £10.85 an hour | £9.50 an hour |
For more information on whether the London or UK Living Wage is payable, see ‘Eligibility for voluntary Living Wage’ below.
The Living Wage is payable to all members of staff over the age of 18 who regularly work for an organisation which is signed up to the scheme.
‘Regularly’ includes working for two or more hours in any given day for eight or more consecutive weeks of the year.
This can apply for employees, workers, contractors and subcontractors. The voluntary living wage does not, however, apply to those under the age of 18, volunteers, apprentices or interns.
The London Living Wage is payable to those who work in workplaces located in all boroughs of Greater London. The UK Living Wage is payable in all other workplaces.