A Nottinghamshire council has announced it will adopt a living wage policy to ensure its workforce is paid a fair amount.
Newark and Sherwood District Council said it plans to give its lowest-paid workers £7.45 per hour.
The authority said the move would allow employees to live without relying on benefits.
It estimates it will cost an additional £24,000 a year, roughly 0.2% of its total wage bill.
The UK's national minimum wage is currently £6.19 per hour.
Human resources manager Tracey Mellors said: "The move towards paying a living wage will help to close the gender pay gap, improve staff morale and have a positive impact on the local economy.
"If we don't pay a living wage, many lower-paid staff simply end up claiming tax credits or other in-work benefits, so the taxpayer just ends up paying in a different way."
The council said it has the support of the trade unions.
The Living Wage is calculated according to the basic cost of living in the UK. Employers choose to pay it on a voluntary basis.