More than 180,000 employees are expected to be forced to raise inflation because wages in the UK are rising against rising transport costs, private rent and local tax.
The wage rate, a voluntary measure adopted by more than 4,700 employers, including Aviva, Burberry and Ikea, will increase by 2.9% to GBP 9 per hour across the country and by 3.4% to GBP 10.55 in London.
Designated by the Living Wage Foundation, the rate is calculated based on the assessment of employees needed to cover basic living costs in the UK and is £ 1.17 higher by an hour than the government's government-imposed living wage for employees over the age of 25.
The Foundation encourages employers to introduce new rates immediately, but the British companies pay for maintenance by May next year to raise the pay rise.
The national minimum wage (the title chosen by former Chancellor George & # 39; and Osborne & # 39; a) is a statutory national minimum wage, but for people over 25 years of age. Is £ 7.83 per hour; will increase to GBP 8.21 per hour from the following April.
For people aged 21-24, the current rate is GBP 7.38 and will increase to GBP 7.70; and the rate for 18-20-year-olds increases from GBP 5.90 to GBP 6.15.
Wage growth in the United Kingdom is taking place when British households are facing increasing pressure associated with higher living costs. Following the EU referendum in 2016, inflation has risen sharply when the sudden fall in the value of the pound has increased the cost of importing goods to the UK.
Although the effects gradually faded, the consumer price index remains at 2.4%, above the 2% target set by the government for the Bank of England. Threadneedle Street calculates that since Brexit was voted, households have lost around £ 900.
Tess Lanning, director of the Living Wage Foundation, said more companies still had to pay higher wages to help workers struggling with rising living costs in the UK. "Employers who pay real living wages allow their employees to live a decent life, supporting them to pay off their debts and face the pressure of rising bills," she said.
Over 1,200 organizations have subscribed to pay higher wages over the past year, including Liverpool FC, University of Bristol, combined authorities of the Sheffield region and Aberystwyth University.
However, these companies and public sector organizations are an exception, not a norm. Over one fifth of jobs pay less than the wage in the UK, according to a study by KPMG.
The employment rate below the minimum wage in the United Kingdom has also increased by 1.2 million since 2012, and part-time workers and people aged 18 to 21 will most likely not reach the threshold.
Frances O & # 39; Grady, Secretary General of TUC, said that millions of people fought to make ends meet. "These new rates would have a huge impact on the lowest earnings in the UK, but more companies have to register," she said.
An increasing number of employers may recognize that they need to raise their earnings to attract employees due to the growing number of vacancies, especially in sectors such as retail, hospitality, agriculture and distribution, because fewer EU immigrants are choosing to come to the UK after the vote on Brexit.
Amazon recently announced a pay rise for its British employees, although it did not sign the commitments made by the Living Wage Foundation. There are still questions about the working conditions in the online store.
The lowest levels of unemployment since the mid-1970s have begun to help employees to demand larger increases. Average weekly earnings, including bonuses, have been growing at the fastest pace for almost a decade, with an increase of 3.1% from three months to August compared to the same period a year ago.
However, separate government data shows that over 10 million employees received a pay rise of 1% or less last year.
James Watt, founder of Brewdog brewing company, the employer of "Wage Wage", said it pays to pay for wages, adding that "it's a pity that short-term mentality and greed still dominate in many industries." He added: "Too many companies in the hospitality industry perceive their employees as transient and one-off, which is why wages are often low, turnover is high, and dissatisfaction is the norm."