Staff at Sheffield University will be paid a living wage of £7.65 an hour from August following a three-year campaign.
The move is expected to benefit about 400 of the lowest paid staff.
It comes on the back of three years of lobbying from Sheffield University Living Wage Campaign, Sheffield Students’ Union and several trade unions.
Olivia Blake, campaign co-chairman, said: “After speaking to staff about the difficulties they face because of low wages, we’re looking forward to seeing an improving situation.
“It’s disappointing it took so long for the university to agree, but we hope this is a sign of better things to come.
The campaign will continue to fight for the Students’ Union to have a living wage policy.
Andrew Dodman, university director of human resources, said: “The university offers an excellent reward package with its commitment to being a world-class employer, but recognises the increased impact the economic position has had, particularly for those staff on the lowest pay grades.
“This change reflects the university’s wider commitment to staff.”