What is the minimum living wage?

The minimum living wage refers to the lowest amount of compensation that an employer is legally required to pay their employees, ensuring that workers can meet basic living expenses. In the UK, there are two key figures to consider: the London Living Wage and the National Minimum/National Living Wage. For instance, in the fiscal year 2017-18, the London Living Wage was set at £10.20, while the National Minimum Wage was £7.50. These rates have gradually increased over the years, reflecting the rising cost of living. By 2020-21, the London Living Wage had risen to £10.85, and the National Minimum Wage had increased to £8.72. These figures highlight the ongoing efforts to ensure that wages keep pace with inflation and the cost of living, thereby supporting workers in achieving a decent standard of living. It is important for both employers and employees to stay informed about these rates, as they play a crucial role in economic stability and social equity.