Nestle To Pay Every Worker The Living Wage
Nestle has become the first major manufacturer to commit to paying the living wage.
The company's 8,000 employees already earn at least the living wage of £8.80 per hour in London and £7.65 elsewhere - but this will now be extended to contract staff and agency workers.
The commitment will benefit 800 people by December 2017.
The living wage, which is judged to be the minimum needed to secure a basic standard of living, is higher than the £6.31 minimum wage.
Nestle is among the world's biggest food manufacturers and campaigners have described their commitment as a "significant milestone".
Living Wage Foundation director Rhys Moore added: "We hope that the leadership they have shown will encourage others in this industry to follow suit and improve conditions for those at the lowest end of the pay scale and sub-contracted staff."
Nestle hopes the move with influence others in the industry.
"We are proud to be the first mainstream manufacturer in the UK to become a living wage employer and see this as an opportunity to be a positive influence in our sector," said Nestle UK and Ireland chief executive Fiona Kendrick.
"As a major UK employer, we know that this is the right thing to do. Not only does it benefit our employees but also the communities they live and work in."
Unions have also welcomed the commitment.
Tim Roache of the GMB union said: "Nestle have always recognised their greatest asset is their workforce and are demonstrating this with action, not just words.
"This shows once and for all that if one leading manufacturer can pay a living wage to all employees including young workers and those contracted out, then many more are able to do so."