7 Making the living wage work in SMEsEvidence from accredited employers in the UK hospitality sector

Andrea Werner

Introduction

The voluntary or real Living Wage (RLW) accreditation scheme in the UK, which commits employers to paying their direct and indirect employee hourly living wage (LW) rates based on ‘basic living costs’ as opposed to (lower) legal minimum-wage rates, has at the time of writing accredited over 6,500 organizations (Living Wage Foundation (LWF) n.d.), and the number keeps growing. One of the surprising facts about the scheme is that about half of the accredited organizations are small and medium-sized enterprises (SMEs) operating in the private sector, with a substantial number of accredited SMEs operating in so-called ...

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