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Pod 6, The Engine Rooms, Station Road
Chepstow
Monmouthshire

01633 730907

For more than 10 years we have provided companies of all sizes and in a variety of sectors with uncomplicated, innovative and affordable human resources advice and on-site support ensuring that your people are an asset to your company and not a liability.

News

With the National Minimum Wage (NMW) now almost fifteen years old, and with another increase pending on 1st April 2017 HMRC have issued a list of the most elaborate excuses they've been given by employers for not paying the appropriate rates:

2026 Real Living Wage Rates Announced

Alan Kitto

We are pleased to highlight the latest rise in the Real Living Wage, as published by the Living Wage Foundation, and explain how it applies to full-time employment.

Please note that this is separate from the National Minimum Wage and National Living Wage rates, which are likely to be published for 2026 in the next few weeks.

What’s New

From 22 October 2025, the Real Living Wage will increase to:

  • £13.45 per hour in the UK (outside London) 

  • £14.80 per hour in London 

The 40-Hour Week Equivalent

For a worker doing 40 hours a week, the new rates translate to:

  • Outside London: £13.45 × 40 = £538.00 gross per week

  • London: £14.80 × 40 = £592.00 gross per week

    Over the course of a standard 52-week year, this equates to approximately:

  • Outside London: £538 × 52 = £27,976 per annum

  • London: £592 × 52 = £30,784 per annum

Why It Matters

The Real Living Wage is a voluntary rate — higher than the legal minimum — and is calculated on the basis of actual living costs (including essentials such as rent, energy, food and transport). 

By moving the hourly rate up to £13.45 / £14.80, the Living Wage Foundation emphasises that many workers will receive a meaningful boost in earnings. 

For Employers and Workers

  • Employers who commit to the Real Living Wage will review pay rates for eligible roles and ensure compliance with the new rate as soon as practical. 

  • Workers in roles now paying at or above the new hourly rate may benefit from this uplift or from the employer’s decision to adopt the rate for new roles.

  • If you’re working full-time (around 40 hours) in a role paid at these rates, the approximate weekly/annual equivalents above offer a clear benchmark.

Looking Forward

As businesses, organisations and potential job applicants review pay rates, the equivalent weekly and annual figures give a straightforward way to understand the impact of the new Real Living Wage. Paying a wage that reflects real living costs is not just good for staff, but contributes to productivity, retention and a positive employer brand.