ALMOST 450,000 working Scots are being paid less than the Living Wage, according to new research.

One in five employees earns an amount below the threshold - an increase of 27,000 people since last year.

The figures, compiled by professional services firm KPMG, come as it is announced that the hourly rate for the voluntary Living Wage is to be boosted by 40 pence to £8.25.

The rate, set by an independent foundation and adopted by 370 Scottish firms, is nearly one-fifth higher than the national minimum wage, set by the UK Government, of £6.70 an hour.

But Peter Kelly, director of the Poverty Alliance which runs the Scottish Living Wage Accreditation Initiative, said "we need to do far more" to combat low pay rates.

Mr Kelly said: “This research reminds us why the efforts to have more employers pay the Living Wage in Scotland is so important.

"With one in five Scottish workers paid less than the Living Wage it is clear that we need to do far more to convince employers of the benefits of it."

In the past year the number of accredited employers in Scotland has risen from just 60 to the current 370.

But a breakdown of the 441,000 people in Scotland earning less than £8.25 per hour shows East Renfrewshire is the worst performing area with 32 per cent of workers earning below the threshold.

The best performing area in Scotland is the Outer Hebrides where only 11 per cent of people earn less than £8.25. The second best is the City of Edinburgh at 14 per cent followed by Aberdeen City at 16 per cent then Glasgow City where 17 per cent of people earn less than the Living Wage pay rate.

Mr Kelly added: "As we have seen over the last year, more and more employers are convinced of the need for a Living Wage and have been receiving the credit for paying it.

"As the economy starts to grow again and more jobs are created, it is critical that we ensure that we are not creating low paid jobs.

"We know that an economy based on low paid work is not sustainable, the Living Wage gives us an alternative approach for an economy based on fairness."

Glasgow University is the latest Scottish institution sign up to the scheme, taking the Living Wage Foundation a step closer to its goal of 500 firms.

Roseanne Cunningham, Cabinet Secretary for Fair Work, Skills and Training, said: “While we have made considerable progress in the last year, we will continue to encourage employers across the public, private and third sectors to pay the Living Wage, which is aimed at reducing low pay and ensuring nobody misses out."