London-based Faucet Inn claims to be the first pub company to have committed to the Living Wage.
The voluntary scheme, launched in 2001, takes into account the area-specific cost of living, as well as the basic expenses involved in supporting a family.
The Living Wage is now set at £8.55 an hour in London and £7.45 an hour in the rest of the UK, compared to the national minimum wage of £6.19 for those aged over 21.
Faucet Inn managing director Steve Cox said the company had been looking at the idea for some time. "We have always tried to pay above the industry average. It is a large financial consideration for the company but we are predominantly London-based and we felt that our staff deserved this and hopefully that would mean getting more productive, efficient people and we would appear more attractive in terms of our peers," he said.
The move means increasing wages for around 250 staff, who were already paid above minimum wage, by about £1.20-£1.30 an hour.
A consultation is set to begin and two sites - Babel in Northcote Road and the King's Head in Earl's Court will trial the new wage arrangement first. It is then expected to roll out to the rest of the company early in 2013.
By Neil Gerrard
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