The world's largest food company Nestle, has announced it will pay the living wage to its entire staff.

The living wage is based on the amount needed to earn to cover the basic costs of living.

The firm that is currently paying the living wage to 8,000 of its employees says it will now also be extending out to its 800 contractors by the end of 2017.

Nestle UK & Ireland chief executive Fiona Kendrick said the firm was "proud" of the decision.
"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." she added.

Campaigners said the move was a "significant milestone" in the battle to convince other employers to adopt the same stance.

Living Wage Foundation director Rhys Moore said: "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."