Elected Member Briefing - Real Living Wage increase
Elected Member Briefing Note 2025, No. 138
About this Briefing Note
Report by: Clare Mailer, Depute Chief Executive
EMBN Number: 138-25
Date: 23 October 2025
Subject: Real Living Wage
Details
Purpose
To inform Elected Members of the Real Living Wage RLW) announcement and outline the implications for Perth & Kinross Council's grading structure.
Briefing Information
On 22 October 2025, the Living Wage Foundation announced an increase in the RLW rate from £12.60 to £13.45 per hour, representing a 6.75% increase.
As an accredited Real Living Wage Employer, Perth and Kinross Council will implement the new RLW rate of £13.45 per hour effective from 1 November 2025. This change will be reflected in the November 2025 payroll, with payment being made on 28 November 2025.
Impact on Salary Scales
The £13.45 RLW rate is now higher than scale points 18 (GE1), 19 and 20 (GE2) as per our current Salary Scales. This means Apprentices & Trainees and staff employed on GE1 will receive the same hourly rate (£13.45) as staff employed on GE2 grade.
Under the two years pay award agreement scale points 18, 19 and 20 will be higher than the RLW from 1 April 2026.
Therefore, the current alignment of SCPs 18-20 with the RLW rate is temporary and only applies during the interim period 1 November 2025 to 31 March 2026.
There are 87 employees who will benefit from this increase and the cost to PKC for five months is £34,317 inclusive of Employer On Costs.
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