More than 800 of them will get an extra 60p an hour from November 1.
Those eligible include school cooks, domestics, cleaners, and nursery assistants. The new rate is £12.60 an hour outside of London and £13.85 in London.
The council is encouraging more employers to pay the Living Wage as it tries to make Newcastle a Living Wage city.
Cabinet member for Resources and Performance, Cllr Paul Frew, said: “Many people are struggling to make ends meet paying bills and buying food so it is only right that we do everything we can to help our employees and people delivering commissioned services.
“Not only is this the right thing to do, but it’s also good for the local economy for people on low incomes to be able to afford the basics. It makes the local economy more resilient and less dependent on state support. Employers who pay it benefit from more productive staff and better retention in a competitive jobs market, it's good business sense.
“We are absolutely committed to making Newcastle a Living Wage City and encourage more employers to consider the benefits.”
More than 100 employers in the city pay the Living Wage – that equates to more than 50,000 employees. The council wants this to rise to 75,000 as more organisations sign-up.
In all 839 staff directly employed by the council will benefit from the rise which will add approximately £316,000 to the council’s pay bill.
Paul Gilroy, Branch Secretary of UNISON said: "UNISON Newcastle City Branch acknowledges the work that Newcastle City Council is doing to help eradicate low pay in the city by being an accredited Foundation Living Wage Employer.
“As one of the largest employers in the city, this sets a positive example that an employer can increase the wages of its lowest paid staff each year to ensure they can afford to meet their everyday needs, not just survive”.
In 2022 Newcastle City Council was given accreditation as a Living Wage Employer by the Living Wage Foundation.
City employers who pay the supplement include Newcastle United FC, Newcastle United Foundation, Newcastle University, the North East Combined Authority, Citizens Advice Newcastle, Newcastle Building Society, and the Town Mouse pub among others.