Set at the rate of £7.20 an hour, it is a sizeable uplift from the current £6.50.
The Chancellor hailed his new initiative as helping bolster the country's financial security, claiming "Britain is getting a pay rise".
But - perhaps predictably - not everyone is convinced of the Chancellor's generosity.
Osborne has failed to win over many people, with some frustrated that the planned mandatory living wage was not, in fact, a living wage.
The non-compulsory hourly payment advocated by the Living Wage Foundation is actually £9.15 - almost £2 more than the Tory MP's proposal.
Cue birth of the '#CallThingsTheLivingWageThatArent' hashtag, spawned by Guardian columnist Owen Jones.
Going to catch the living wage home. Well most people call it a bus but if Osbourne can #CallThingsTheLivingWageThatArent so can I.— Bryony (@Bee333andTea) July 8, 2015
I'm going to rename my kitten Living Wage. If Osborne can #CallThingsTheLivingWageThatArent, why can't I?— Owen Jones (@OwenJones84) July 8, 2015
Think we all need to treat ourselves to a nice cheeky glass of Living Wage after that budget! #CallThingsTheLivingWageThatArent— Justme (@HelenHells3) July 8, 2015
The #CallThingsTheLivingWageThatArent hashtag is making me giggle. The fact that Gideon thinks you can live on that is no joke though.— Janet Mohapi-Banks (@Jmobanks) July 8, 2015
Osborne can kiss my hairy sweaty living wageJuly 8, 2015
Having a nice bowl of living wage for lunch. You might think it's soup but I can #CallThingsTheLivingWageThatArent too.— george (@monster_soup) July 8, 2015
I was going to call my penis The Living Wage but mine actually rises and includes in-house benefits. #CallThingsTheLivingWageThatArent— Matthew Bonson (@TheOneDonBon) July 8, 2015
The Twitter backlash came after Osborne delivered the first Conservative-only Budget for nearly 20 years, young people being some of the worst affected by proposed cuts, the Chancellor confirming that student maintenance grants will be abolished in 2016-17 and tuition fees are to rise in line with inflation.
Osborne pointed to the Greek crisis as evidence that a "bold new settlement" is needed, saying Britain was still "borrowing too much and spending too much".