Glossary · UK
What is Real Living Wage?
A voluntary, independently calculated wage based on living costs — higher than the statutory minimum.
Full Definition
The Real Living Wage is a voluntary hourly rate set by the Living Wage Foundation, based on the actual cost of living rather than legal minimums. It should not be confused with the statutory National Living Wage, which for 2026/27 is £12.71 an hour and is the legal minimum for workers aged 21 and over. The Real Living Wage is typically higher and has a separate, higher London rate to reflect the capital's costs; thousands of accredited employers choose to pay it. Unlike the National Living Wage and National Minimum Wage, no employer is legally required to pay the Real Living Wage — it is a voluntary commitment. It applies to everyone aged 18 and over, whereas the statutory rates are age-banded with lower rates for younger workers and apprentices.