Real Living Wage and the Greater Manchester Good Employment Charter

Real Living Wage and the Greater Manchester Good Employment Charter

What is the Real Living Wage

The Real Living Wage is a voluntary hourly rate based on the real cost of living. It is calculated annually by the Living Wage Foundation.

Current Real Living Wage (UK, 2025)
£13.45 per hour
Announced in October 2025.

Sources:
https://www.livingwage.org.uk/what-real-living-wage
https://www.livingwage.org.uk/news/real-living-wage-rates-increase-£1345-uk-and-£1480-london

The Real Living Wage reflects essential living costs including housing, transport, energy and food. Employers choose to pay it and can apply for accreditation through the Living Wage Foundation.

Greater Manchester Good Employment Charter

The Greater Manchester Good Employment Charter is a voluntary initiative that supports employers across all ten GM boroughs to improve job quality and workplace standards.

Sources:
https://www.gmgoodemploymentcharter.co.uk/about
https://www.manchester.gov.uk/info/350/invest_or_locate_in_manchester/8457/greater_manchester_good_employment_charter

The Charter promotes seven characteristics of good employment.
• Fair pay
• Secure work
• Flexible work
• Engagement and voice
• Good recruitment
• Excellent people management
• Health and wellbeing

Paying the Real Living Wage, or demonstrating progress toward it, is expected within the Charter’s fair pay standard.
Source: https://www.gmgoodemploymentcharter.co.uk/the-charter/pay

Pay and Employment in Greater Manchester

Low pay remains a challenge in the region. In 2024, 16.2 percent of jobs in Greater Manchester were paid below the Real Living Wage.
Source:
https://www.greatermanchester-ca.gov.uk/what-we-do/economy/living-wage-city-region/about-the-real-living-wage

The Charter provides a consistent framework that encourages employers to improve pay, security and fairness across Greater Manchester.

Businesses receiving investment from the Greater Manchester Combined Authority must be supporters of the Charter. This helps embed good employment practices into public spending and procurement.
Source:
https://www.greatermanchester-ca.gov.uk/what-we-do/economy/greater-manchester-good-employment-charter

Recent Developments

• The Real Living Wage increased to £13.45 in October 2025.
• More than 1,500 employers are now engaged with the GM Good Employment Charter.
• The Charter continues to expand support in areas such as secure work, wellbeing, flexible working and fair recruitment.

Sources:
https://www.livingwage.org.uk/news/real-living-wage-rates-increase-£1345-uk-and-£1480-london
https://www.gmgoodemploymentcharter.co.uk/faqs
https://www.manchester.gov.uk/info/350/invest_or_locate_in_manchester/8457/greater_manchester_good_employment_charter

Why This Is Important to the Salford Social Value Alliance

The Salford Social Value Alliance (SSVA) promotes social, economic and environmental wellbeing across Salford. Fair employment and fair pay are central to its mission.

How the Real Living Wage and the GM Good Employment Charter support the SSVA

Improved financial wellbeing for Salford residents
More people earning the Real Living Wage reduces financial hardship and improves quality of life.

Reduced inequality in the city
Low pay is a major barrier to opportunity. Encouraging RLW adoption and good employment practices helps reduce in-work poverty.

A stronger local economy
Fair pay increases local spending power, supporting Salford businesses and community prosperity.

Higher employment standards
The Charter promotes secure work, fair recruitment, strong people management and healthy workplaces. These align with Salford’s wider social value goals.

Demonstrable social value
Organisations that adopt the RLW or join the Charter can clearly evidence their contribution to social value outcomes.

Responsible and community-focused business practice
Participation signals a commitment to fairness, equality and long-term benefit for staff and the community.