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Living Wage Guide and FAQs

  • Do employers have to pay the Living Wage by law?

    The Living Wage is a voluntary higher rate of base pay. It provides a benchmark for responsible employers who choose to pay more than the National Minimum Wage.

  • Who does the Living Wage apply to?

    The Living Wage applies to all staff aged 21 and over, unless on an apprenticeship.

  • Which ages does the Living Wage apply to?

    The Lincoln Living Wage Campaign applies the Living Wage to all employees aged 21 and over, unless on an apprenticeship.

  • How do I join the Lincoln Living Wage Register?

    The Lincoln Living Wage Register is open to all organisations based in Lincoln that pay the Living Wage (£8.45 an hour) to all its employees aged 21 and over.

    To join the register, all you need to do is complete the sign up form available on this website.

     

  • How do I receive a Lincoln Living Wage Accreditation Logo?

    The Lincoln Living Wage Accreditation Logo is available to all organisations based in Lincoln that pay the Living Wage (£8.45) to all its employees aged 21 and over.

    When you sign up to the Lincoln Living Wage Register, we will send you an Accreditation Logo, free of charge, for you to display on websites, letterheads, premises entrances, and other promotional areas.

  • How does the 3 star accreditation work?

    Whilst every organisation that pays the Living Wage and is signed up to the Lincoln Living Wage Register is entitled to a Lincoln Living Wage Accreditation Logo, the accreditation scheme operates on a 3 star model.

    • One star is provided if your organisation pledges it pays the Living Wage to all its employees that are aged 21 and over
    • One star is provided if your organisation pledges it has banned the use of zero hour contracts (except in the case of relief / casual contracts, where the employee is freely available to refuse hours)
    • One star is provided if your organisation pledges its main suppliers also pay the Living Wage to all its employees
  • How much does it cost to become accredited with the Lincoln Living Wage Campaign?

    Accreditation with the Lincoln Living Wage campaign is free to all employers based in Lincoln.

  • Can bonuses be included in the Living Wage rate?

    Only guaranteed non-deferred payments can be included in the Living Wage rate.

    This means guaranteed bonus payments can be included. An example of guaranteed bonuses are a time away from home allowance. Non-guaranteed payments such as productivity or sales related bonuses cannot be included.

  • Can pension payments be included in the Living Wage payment?

    No. Only guaranteed non-deferred payments can be included. A pension is a deferred payment and so does not help the employee with the cost of living at the current time.

  • How do I get the zero hour contracts accreditation star?

    Whilst use of zero hour contracts does not bar you from becoming accredited with the Lincoln Living Wage Campaign, banning zero hour contracts does get your organisation an additional accreditation star as a fair employer.

    However, it is recognised that in some cases, zero hour contracts are appropriate for relief staff. Therefore, where an employee is employed on a relief basis, but is freely available to turn down any hours offered, then the employer is still eligible for the fair employer star.

  • How do I get the suppliers accreditation star?

    Not all supplier contracts need to be subject to the Living Wage.

    It applies where a contractor provides a service  for 2 or more hours of work in any given day in a week, for 8 or more consecutive weeks in a year.

  • What is the Living Wage as an annual salary?

    The Living Wage Foundation does not publish the Living Wage as an annual salary as the requirement is that the Living Wage is paid for each hour worked.

    However, the annual salary can be worked out by calculating Living Wage x hours worked per week x 52.

    For example the UK Living Wage (outside London) as an annual salary might be £8.45 x 38 x 52 = £16,697.20

    Where a salary calculation is used the Living Wage must also be paid for each hour of over time worked.

  • What about nationally agreed payscales?

    It is possible to keep pay scales in place and pay a top up pay for those in the lower salary brackets that are paid below Living Wage.

  • Do I have to give everyone in my organisation a pay rise?

    The Living Wage rise only applies to staff whose salary is directly affected by the Living Wage.

    You are not required to offer the same % increase to all staff.

    Employers should negotiate with staff and trade unions on pay rises for staff who are not directly affected by the rise in the Living Wage. 

  • Where can I get more information on the Living Wage

    The Living Wage Foundation is the authority on the Living Wage. Its web address is www.livingwage.org.uk