A new report has shown that one in five workers in the UK is being paid less than needed for a basic living.
The report, by KPMG, has revealed that five million people across the country are not earning enough money to sustain a good level of living.
Minimum wage is currently at £6.19 for workers aged 21 and over however the current earnings for a ‘living wage’ and for an individual to sustain a basic standard of living is at £7.20 an hour across the UK. The living wage has been adopted by some employers across the UK however it is not mandatory.
Although there isn’t much of an increase between minimum wage and the living wage, it’s thought many employers are not paying staff enough to sustain a healthy level of living. Some reports on the internet suggest that many employees struggle from pay cheque to pay cheque and it’s thought the jump to the living wage could help this.
Figures in the report show that 16% of workers in London and the South East are earning below £7.20 an hour while 23% of workers in Wales are earning below the living wage.
Nearly 800, 000 retail assistants are being paid less than the living wage, the report revealed and other jobs mentioned include bar staff, waiters and waitresses.
Although the living wage is not compulsory for employers, many employers across the UK have been encouraged to adopt it since the UK’s economy has begun to grow once again.