Nestlé has confirmed that it will pay the living wage to all UK employees. The UK minimum wage is currently £6.31 an hour, whereas the living wage is currently set at £8.80 an hour in London and at £7.65 everywhere else.
The living wage is set by an independent foundation each year based on the amount that an individual needs to earn to cover the cost of living in the UK.
Nestlé already pays the living wage to its 8,000 employees but this move will benefit contract staff and agency workers, with around 800 contractors implementing the living wage by December 2017.
Nestlé UK & Ireland chief executive Fiona Kendrick said, “We are proud to be the first mainstream manufacturer in the UK to become a living wage employer and see this as an opportunity to be a positive influence in our sector."
The UK business secretary Vince Cable welcomed the decision and said that he would, "encourage all businesses to pay their staff above the minimum wage when it is affordable and not at the expense of jobs."
Campaigners for the living wage in the UK said it was a significant milestone and that they hope this move will encourage other employers in the industry to follow suit.
