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Living wage employers increase hourly rate to £8.75

Increase of 30p is to keep in line with inflation and the cost of living.

Living wage: Thousands of companies across UK pay rate.
Living wage: Thousands of companies across UK pay rate.

Accredited living wage employers in Scotland have committed to giving staff a pay rise to £8.75 per hour.

The 30p increase is to keep in line with inflation and will ensure pay "keeps pace with the real cost of living over the next year", the Living Wage Foundation said.

It will be paid by thousands of companies across the UK but research has found 404,000 employees (18%) in Scotland are still paid less than the living wage.

Foundation director Katherine Chapman said: "The new living wage rates announced today will bring relief for thousands of Scottish workers being squeezed by stagnant wages and rising inflation.

"It's thanks to the leadership of employers across Scotland who are committed to paying all their staff, including cleaners and security staff, a real living wage.

"Recent figures show that 5.5 million people are still paid less than the real living wage - it's fantastic that this year alone over a thousand more employers across the UK have chosen to go beyond the legal minimum and pay a real living wage, putting fairness and respect at the heart of their business."

She added: "Great Scottish businesses know that, even during these tough times, not only is fair pay the right thing to do but paying the real living wage brings big benefits.

"Nine out of ten accredited living wage employers report real benefits including improved retention, reputation, recruitment and staff motivation."

Fair work minister Keith Brown welcomed the rise.

He said: "Scotland remains the best-performing of all four UK countries with the highest proportion of employees paid the living wage or more.

"This is a fantastic achievement and a testament to our work promoting the Scottish Government's fair work agenda and putting equality at the heart of our labour market.

"I want to encourage more businesses and organisations from around Scotland to recognise the benefits of paying the living wage and ensure that employees' basic wage continues to meet the real cost of living."

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