Living Wage

Cambridge Living Wage

Following the Vice Chancellor’s speech of 1 October 2018, the University has taken the decision to introduce a new minimum rate of pay for all directly contracted staff in order to reflect that the higher cost living associated with the Cambridge area is disproportionately felt by those at the lower end of the pay scale.

A Cambridge Living Wage (CLW) will be effective from 1 August 2019 and will apply to all directly contracted staff, workers on assignment through the Temporary Employment Service (TES), and workers paid through the University Payments System (UPS).

The CLW is set at £10 per hour or equivalent (equal to a full time salary of £19,071 based on a 36.5 hour working week), and will be paid as a supplement each pay period for the difference between an employees current basic hourly rate and the Cambridge Living Wage. The supplement will cease to be paid once an employees base salary is at or exceeds £10 per hour (currently spine point 22).

The Cambridge Living Wage rate will be reviewed periodically as required. Any subsequent increase would require approval by the relevant University committees.

Real Living Wage accreditation project

The Real Living Wage (RLW) is an hourly rate of pay set independently by the Living Wage Foundation (LWF) and updated annually in November each year. The rate is calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, and is based on the best available evidence about living standards in London and the UK (https://www.livingwage.org.uk/calculation). The RLW was previously known as the Voluntary Living Wage (VLF)

The University of Cambridge agreed to seek accreditation from the Living Wage Foundation (LWF) under a Grace submitted to Regent House on 7 February 2018 (Reporter p. 386). As part of the accreditation project, the current progress is:

• The University has voluntarily paid the RLW to direct employees since 1^st August 2014.
• Work is now ongoing to ensure that contracts which include the provision of contractors/ sub contractors who meet the RLW criteria are identified and a plan agreed with the Living Wage Foundation to ensure that indirect workers receive the RLW.

The Living Wage Foundation has more detail on the current and historical RLW rates

For any queries on the Cambridge Living Wage (CLW), or the RLW accreditation project please contact the Reward team (CAMbens@admin.cam.ac.uk)

Explaining UK and Cambridge Living Wage rates