Living wage boost reminds employers of new commitments

Lidl, the supermarket chain, has pledged to pay 9,000 of its UK workers at least the full living wage from October.

The pay rise will cost Lidl £9m and push its minimum pay beyond the recommendation of campaign group Living Wage Foundation which says employers should pay an hourly rate of £7.85 – and £9.15 in London.

Lidl says the new policy amounts to an average pay rise of £1,200 a year, with all UK employees earning at least £8.20, moving up to £9.35 in London. The chain’s employees currently receive £7.30 an hour, with workers in the English capital seeing £8.03.

The figures are greater than those of the government’s mandatory National Living Wage (NLW) – £7.20 an hour for workers aged 25 and over. NLW will be rolled out from the start of the next tax year. It amounts to a 70p increase on the current National Minimum Wage (NMW) rate of £6.50 and amounts to an annual increase of £1,200 for a full-time worker.

Before April’s change, the £6.50 rate increases in October 2015 to £6.70. The NMW will continue to apply for those aged between 21 and 24.

By using Moore Thompson’s dedicated payroll service, employers can be sure that compulsory changes will be implemented. For more information, please contact us.