Social equity & labour
Living Wage Certification
Definition
Living wage certification is third-party accreditation confirming that an organisation pays at least a living wage — a rate independently calculated from the actual cost of living rather than the statutory minimum — to all staff, typically including subcontracted workers. In the UK, the Living Wage Foundation accredits employers against its annually updated real Living Wage rates.
References
Supports definition and framing.
Overview
What it means
Certification converts a voluntary pay commitment into a verifiable claim: accredited employers agree to raise pay when rates are updated each year and to extend the rate to contracted on-site staff such as cleaners and security workers.
How it is used
Employers use accreditation for recruitment, retention, ESG reporting and procurement credentials; investors and procurement teams use it as evidence of decent-work performance.
Why it matters
Paying below a living wage leaves full-time workers in in-work poverty; certification creates accountability and has moved thousands of employers above statutory minimum rates, with documented wellbeing and turnover benefits.