The Scottish Government has become a fully accredited Living Wage Employer.
It comes months after Ministers championed the cause, and following revelations that only seven backbench SNP MSPs pay the rate of 7.85 to all staff.
Business across the country are being urged to follow suit, despite the rate not being a legal requirement.
So far, more than 200 organisations have signed up to become accredited, by paying all their directly employed and subcontracted staff at least £7.85 an hour.
The Scottish Living Wage Accreditation Initiative is operated by the Poverty Alliance and has been operating since April 2014.
Trades Union Congress figures claim that more than a third of firms in North east Fife, with its reliance on the tourism, retail and catering servicesdon't pay Living Wage - making it the worst area in Scotland.
Peter Kelly, Director of the Poverty Alliance, said today:
”The Poverty Alliance is pleased to see the Scottish Government join hundreds of other employers who have become accredited Living Wage employers.
”The Living Wage is an important tool in helping lift people out of poverty and we are celebrating that the Scottish Government has chosen to lead by example.
”With almost two thirds of children in poverty in Scotland living in a household where someone works, it is now more important than ever that people are adequately remunerated for their labour.
”I hope that other organisations will follow in the Scottish Government’s footsteps and sign up to the Scottish Living Wage Accreditation Initiative.”
The First Minister, Nicola Sturgeon, said her Government is "committed to fairness and supporting those on the lowest incomes".
She said: "We recognise the real difference the Living Wage can make to the people of Scotland. Research published just last week highlighted enhanced productivity, reduced absenteeism and better staff morale as just some of its potential benefits.
“We have been working closely with the Poverty Alliance to encourage employers across Scotland to pay the Living Wage and to seek formal accreditation for doing so. There are now over 200 Scots-based employers who proudly display the Living Wage Employer Mark.
'Real cost of living'
“The Scottish Government has been paying all of its staff above the level of the Living Wage for some time but now we are happy to say that we are amongst the number of officially accredited employers – a step which further demonstrates our commitment to payment of the Living Wage in Scotland.
“However, more needs to be done. We are committed to having 500 Scots-based Living Wage accredited employers by March 2016, a decisive long-term commitment to those on the lowest pay.”
Rhys Moore, director, Living Wage Foundation said “such a high profile announcement will no doubt drive interest".
"We hope to encourage more businesses and organisations to also consider becoming Living Wage employers. The Living Wage isn’t only the right thing to do it also makes good business sense." he added.
“The best employers are voluntarily signing up to pay the Living Wage now. The Living Wage is a robust calculation that reflects the real cost of living, rewarding a hard day’s work with a fair day’s pay.”