Low-paid workers with Dundee City Council will see their pay packets boosted next month.
A total of 234 employees will benefit from the introduction of the living wage, which has been set at £7.20 per hour.
Councillors are set to give final approval to the rise on Monday.
The living wage has been set at just over £1 per hour more than the national legal minimum.
It will cost the council £51,000 for the remainder of 2012-13 and £122,000 during 2013-14.
Councillor Willie Sawers, depute policy and resources convener, said: ”We are introducing the living wage to help hard-pressed employees and their families who are facing increased living costs.
”This move is timely with the winter approaching and fuel costs being pushed up by the energy companies.
”As a major employer in Dundee, the city council tries to adopt good employment practice across the organisation.
”I firmly believe that paying the living wage fits with our ambition to be a good employer.
”It will directly benefit the lowest-paid workers and help improve morale across the council.
”The implementation of the living wage is gaining momentum within the public sector in Scotland thanks to the lead given by the Scottish Government.
”I would like to see this momentum extended to low-paid workers employed by Tayside Contracts, our arms-length contracting organisation.
”Consequently, we have referred this to the joint committee of councillors from Angus, Perth and Kinross and Dundee who are able to make a decision on behalf of Tayside Contracts.”
Labour councillor Richard McCready has called for the city council to support the proposed Living Wage (Scotland) Bill in the Scottish Parliament.
He said: ”I also hope that the council will take the lead and support the living wage for other workers in the city.
”We should be looking at ways in which we can ensure that companies that receive contracts from the council pay the living wage.”