Abertay University has become one of the city’s largest employers to gain accredited Living Wage status.
The university, which employs around 700 staff, will now pay all of its workers a minimum of £9 an hour.
This is the rate the Living Wage Foundation states is the minimum required to survive.
It is 79 pence-an-hour greater than the National Living Wage, formerly known as the minimum wage, which is set by the UK Government.
Earlier this year Dundee City Council announced its ambition to make Dundee a Living Wage City.
There are now 61 accredited Living Wage employers in Dundee who directly employ more than 16,400 workers.
Abertay University vice-principal Mark Batho said: “Abertay has matched the Living Wage rate of pay for several years and this accreditation further demonstrates our commitment to ensuring our staff and regular contractors are fairly rewarded for their work.”
Dundee City Council leader John Alexander said: “I’m delighted to see an organisation with as high a profile as Abertay University becoming a Living Wage Employer.
“In Dundee we are incredibly proud to be championing the real Living Wage and I’m delighted that Abertay are helping us make this ambition a reality.
“I have no doubt that Abertay joining in the fight for a fairer wage will encourage other big employers in the city to do the same.”
Scottish Government fair work minister Jamie Hepburn visited the university yesterday and said: “Ensuring staff are fairly remunerated, by paying the real Living Wage, is a key aspect of demonstrating commitment to fair work practices.
“That is why I am pleased to see Abertay University has joined the growing movement of employers across Scotland demonstrating that they are paying the real Living Wage.
“Having an institution of its size achieve Living Wage employer status is critical in taking forward Dundee’s ambitions to create a Living Wage City.
“The Scottish Government has long championed Fair Work and paying the real Living Wage. It ensures that workers are treated fairly and get more money in their pockets. It benefits our economy too, showing that what is good for workers is also good for business and for the economy.”
Meanwhile, a new survey has found that the low cost of living makes Dundee the best place to live for workers who are only earning the minimum wage.
According to the website myvouchercodes.co.uk Dundee has an average rent of £415 per month, making it the eighth cheapest city for rent in the UK.
The average person in the city will have a yearly living cost of £10,893.22, leaving £5,116.28 left over from a minimum wage job once all living expenses are deducted.
Dundee was followed by Bangor and then Perth.
The most expensive city was London where living costs exceed total minimum earnings wage by more than £1,000 a month.