MORE than 600 businesses in Scotland are to give employees a pay rise as the Living Wage rises by 20p an hour.

The change, which takes the hourly rate for adult workers to £8.45, was announced by First Minister Nicola Sturgeon, who urged more firms to become accredited Living Wage employers.

The scheme, administered by the Poverty Alliance, reflects the cost of living and pays more than the UK Government’s similarly-named National Living Wage, which stands at £7.20 an hour.

In an ongoing feature, participating companies have told The National how taking part has aided recruitment, staff retention and productivity.

Many have also said the decision is an ethical one, allowing them to fairly reward staff for their labour.

The rise was announced as Sturgeon visited the Airdrie headquarters of UK-wide painting and decorating contractor The Bell Group, which is the latest firm to sign up.

Co-founder Annette Bell said: “We are delighted to mark becoming an accredited real Living Wage employer to celebrate our company’s renowned commitment to the overall wellbeing of our employees with a visit from the First Minister, Nicola Sturgeon today.

“Bell Group today is one of the largest dedicated painting and maintenance contractors in the UK both in terms of our directly employed workforce and geographical coverage.

“Whilst being market leader, we remain a family-owned and operated business with our foundations being built on a true family ethos.

“The majority of our staff are already paid well above the Living Wage, however becoming accredited meant that we could renew our commitment to ensure that all our staff have a decent quality of life.

“Furthermore, this accreditation allows us to persuade other companies within our supply chain to look and follow suit, driving the Living Wage ethos throughout the industry.”

Employee Megan Kelly, 21, who is among those to benefit from the change, said: “The difference the real Living Wage has made is that I’ve finally been able to buy and run a car, which has helped me be more independent. Before, I had to rely on family to get me to work or walk to work in the dark winter mornings.

“It takes the worry away – a financial problem isn’t just about finances, you think about it all the time.”

Sturgeon said: “Like the Bell Group, 630 employers in Scotland are now accredited Living Wage employers and I want to see all businesses implement the new Living Wage rates as soon as possible.

“For business, paying the Living Wage makes sense – it’s an investment in people and all the evidence shows it leads to increased productivity and reduced staff absence and turnover, while sending a strong signal to customers about fairness.

“Yet we also know around 20 per cent of Scotland’s workforce earn less than the Living Wage. With low pay one of the main drivers of in-work poverty, it’s vital that employers who can pay the real Living Wage do so.”

Poverty Alliance director Peter Kelly said: “It’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure employees earn enough to cover the real cost of living.”