Pay and procurement: new IWFM/NEC practice note on paying the Living Wage in FM contracts


  • Employment and Skills,
  • Procurement

24 November 2021

Living wage

Following the recent announcement of increases to the Living Wage rates, IWFM and NEC have jointly published a practice note on incorporating the Living Wage in the new NEC4 Facilities Management Contract (FMC).

This guidance highlights the importance of paying the Living Wage throughout the supply chain in FM contracts, explains how it would be implemented in the FMC, and outlines the differences between the Living Wage and the lower statutory wage rates. It is particularly appropriate for contracts which include the provision of ‘soft services’ such as cleaning and security. Improving pay not only supports individuals and their families; it has also been shown to benefit an organisation’s bottom line, as well as local communities.

The new Living Wage practice note is the second in a series of publications which will provide guidance for practitioners and clients on how important region and sector specific issues can be adjusted and reflected in the FMC contract.

To view or download the new practice note, click here.