Blackburn-based Accrol Papers have announced the firm will pay their staff the Real Living wage.
There are over 11,000 accredited Living Wage employers in the UK, with 128 of these being based in the county.
The company said it will also become the only accredited Living Wage manufacturer based in the South Ribble. It says it will be only tissue manufacturer in the UK to be a Living Wage employer.
The national minum wage for those over 23 is £9.50, while the real Living Wage is £10.90 says the Living Wage Foundation.
The national minimum wage is set to rise to £10.42 from April 1 next year.
The real Living Wage is the UK’s only wage rate independently calculated to meet the cost of living.
Kathryn Robinson, HR director at Accrol, said: “At Accrol, we understand that rising costs are having big impact on everyone – as a business we’re not immune and neither are our employees.
"In being an accredited Living Wage employer, we have confidence and assurance that Accrol colleagues continue to have the financial means to enjoy a minimum acceptable standard of living.
"They also have access to a clear career progression path as they develop their skills with us.
"At Accrol our colleagues are critical to our success and it’s important to us that through their employment they can lead happier, better and more financially successful lives.
"Of the 128 accredited Living Wage employers in Lancashire, just 14 of these are manufacturers."
The Living Wage Foundation are urging more employers to get on board detailing the benefits such as "improvements to colleague motivation, retention rates and relations between managers and their staff".
Katherine Chapman, director of the Living Wage Foundation, said: “We’ve continued to see employers like Accrol making the commitment to do right by their employees and pay their staff a real Living Wage. Living Wage employers are leading the way by doing right by their workforce.”