Car dealership TrustFord will pay its staff the real living wage from 1 April.
The firm, which has its headquarters in Colchester and employs more than 3,000 people across the UK, committed to paying the voluntary rate to all non-apprentices.
Managed by the Living Wage Foundation, the real living wage is currently set at £9.90 per hour outside London and £11.05 in the capital.
This is higher than the government’s legally binding national living wage of £8.91 for people aged 23 and over.
TrustFord joins almost 10,000 businesses that have pledged to pay the voluntary rate to help their staff with the cost of living. Household names such as Aviva, Burberry and Lush are among those accredited by the foundation.
The car dealership also announced plans to “significantly” hike basic salaries for staff working in sales and aftersales roles.
Major changes will also come into force to reduce working hours, the firm said, while more employees will be moved on to five-day-week contracts to aid work-life balance.
TrustFord has also recently introduced flexible working hours across all job vacancies, as well as a hybrid working policy for certain jobs, with colleagues now able to choose to work from home some days as long as they spend at least two days a week in the workplace.
TrustFord HR director Sharon Ashcroft said paying the real living wage was “the right thing to do for our people”.
“We believe in paying a meaningful salary for all of our colleagues and making a positive impact on their lives,” she added.
“Investing in our people and offering flexible working hours and a hybrid working policy means we can help our colleagues establish a positive work-life balance, ensuring we attract and retain the best and most motivated people.
“We also hope it will attract more females to the automotive industry – something which is very close to my heart.”