The calculation
- The UK Living Wage for outside of London has been announced on Wednesday 22nd October 2025 as £13.45 per hour.
- The London Living Wage as £14.80 per hour. This covers all boroughs in Greater London.
- The rates are calculated annually by the Living Wage Foundation and overseen by the Living Wage Commission, based on the best available evidence about living standards in London and the UK.
- The basket of goods draws on the Minimum Income Standard to identify everyday living costs through public consensus.
- Before 2016 the London Living Wage was calculated by the Greater London Authority and the UK rate was calculated by the Centre for Research in Social Policy at Loughborough University.
The real Living Wage is the only wage rate in the UK based on the cost of living. It is voluntarily paid by over 16,000 businesses that believe their staff deserve a wage that meets everyday needs, such as the weekly shop or an unexpected trip to the dentist.
Thanks to the Living Wage campaign, over half a million employees have received a pay rise. The campaign enjoys cross-party support and has accredited a wide range of employers, including half of the FTSE 100 and well-known names.
The Living Wage rates for 2025-2026 were announced on 22nd October 2025. Living Wage accredited Employers have until 1st May 2026 to implement these new rates.
Can SD Worx UK payroll support the Living Wage?
The SD Worx UK payroll engine can support the automated application of the real Living Wage.
An employer can confirm they are a living wage employer with the automated application of rates and associated rate rules that automatically uplift on the employers chosen application date.
The SD Worx Academy offers an interactive training course on the real Living Wage:
Need some help
The SD Worx solution offers automated updates of Living Wage and London Living Wage for employers who join the service. Associated alternate rates can also be configured with rate rules. For implementing living wage options please fill in the form below to get in touch and receive a quote.
PSP original 24/10/2023 updated 22/10/2025