Paying a Real Living Wage
Over the summer we found the welcome pack from the Living Wage Foundation which had arrived at the start of the pandemic and had somehow been forgotten. Among other things it contained a sticker which you might have noticed in the shop window.
A few years ago we decided to peg our wages to the Real Living Wage, making it a fixed item on the balance sheet. If Loaf’s profits increase then we can of course pay more, but we won’t go below it.
So, what’s that all about and why did we join?
The Living Wage Foundation was set up in by Citizens UK and is independent of the government, though it has cross-party support. The rate is calculated each year based on the cost of living — the current rate is £9.50 per hour — and paying it is purely voluntary.
The reason it’s called the Real Living Wage is to distinguish it from the mandatory government National Living Wage, a 2016 re-brand of the “minimum wage”. This is based on a different calculation and is currently lower, at £8.91 per hour. While the naming might seem cynical, the gap between them has been reducing and the intention is that they eventually reach parity.
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