Lancashire County Council is set to become a Living Wage employer.
Bosses at County Hall intend to bring in the Living Wage as its minimum pay rate for all centrally employed staff with effect from April next year.
The decision is due to be ratified at a Cabinet meeting next month and then go to Full Council.
Overall 3,638 centrally employed employees will be paid at least the Living Wage, which is currently £7.45 an hour, but is due to increase in November.
The change will cost the council £172,612 which will be funded from the resources released from the outcome of the recent review of reserves.
A series of pay grades will be replaced with the Living Wage amount.
It will mean anyone on a pay grade currently below the Living Wage will see their pay increased.
The report due before the Cabinet states: “It is proposed that the introduction of the Living Wage would be implemented in two phases.
“The phasing of the introduction of the Living Wage will ensure the lowest paid centrally employed staff will immediately secure a benefit from this initiative.
“Currently in relation to Lancashire County Council staff, 3.4 per cent of the adult full-time workforce and 45.1 per cent of the adult part-time staff - of which 92.7 per cent are employed within Lancashire County Commercial Group (LCCG)- earn less than £7.45 an hour.
“So it is this group of workers who would benefit most from uplift in their hourly rates to the Living Wage of £7.45.”
The report proposes that the position in relation to schools will be the subject of discussion with the Schools Forum with a view to consideration of the adoption of the Living Wage by individual school governing bodies.
The report also proposes that a review be undertaken to consider the benefits to the Lancashire economy and its citizens and the financial implications for the County Council of a broader application of the scheme in respect of organisations that currently provide goods, services and works to the County Council.
The Living Wage is not a new concept.
It has been around in its present form since 2005, it is an informal benchmark, not a legally enforceable minimum level of pay, like the national minimum wage.
Apart from in London, is currently calculated and set by the Centre for Research in Social Policy at Loughborough University on an annual basis.
The Living Wage is now set at £8.55 an hour in London and £7.45 an hour in the rest of the UK. By comparison, the national minimum wage is significantly lower, at £6.31 an hour for those aged over 21.
The matter will go before Lancashire County Council’s Cabinet meeting on November 7.
It is expected the Cabinet will recommend that Full Council approve the proposals.