The Living Wage is an independently calculated hourly wage rate designed to pay employees enough to cover their basic living needs (eg. cost of food, housing and basic needs).
Although the household circumstances of each worker will be different, the wage rate is calculated to reflect a locally determined minimum acceptable standard of living.
The calculations incorporates the cost of a basic basket of goods and necessary housing, childcare and transport costs, as well as statistical analysis on households below half the average income.
For more information please see the Living Wage Foundation.