The Living Wage for London workers is set to increase by 25p to £9.40, Boris Johnson announced on Monday.
The new voluntary rate in London is currently set at £9.15 an hour.
The London Mayor announced the voluntary rate in London, urging employers to pay it.
Almost 70,000 workers are set to receive a pay rise after a new rate of £8.25 an hour was announced for the voluntary National Living Wage.
The figure is an increase of 40p an hour, and is significantly above the national minimum wage of £6.70.
The new rate compares with the new national living wage of £7.20 announced by the Government, which is set to come into force for over 25-year-olds next April.
Accredited Living Wage employers will pay their staff at least the new voluntary Living Wage rate of £8.25 per hour, rising from £7.85.