The electricity and gas transmission company has committed to pay its staff, including third party contractors, at least the living wage of £7.85 per hour, or £9.15 if they are working on London.
This is above the national minimum wage of £6.50 per hour and more than the minimum wage premium recently announced for the over-25s of £7.20, set to be introduced in April 2016.
National Grid executive director John Pettigrew said: “We already pay our employees above the Living Wage, but we also want to make sure that those that work on behalf of National Grid are rewarded appropriately.
“We hope to influence our vast supply chain so that the Living Wage is a compulsory element for all new contracts.
“This is an important principle for us, not just because it is the right thing to do but because as a responsible business, we believe that everyone should be appropriately rewarded for the vital work we do to safely and reliably connect people to the energy they use.”
Living Wage Foundation director Rhys Moore added: “We are delighted to welcome National Grid to the Living Wage movement as an accredited employer.
“As one of the UK’s largest companies the decision by National Grid to go above and beyond paying the statutory minimums shows great leadership, and we hope many more organisations will follow their lead.”
The move by National Grid means it joins the likes of Centrica, Ovo, SSE and Yorkshire Water as Living Wage accredited employers.