Celtic is coming under intense pressure from campaigners, trade unions and politicians to increase the pay of its staff after the club's board recommended refusing to introduce a 'Living Wage'.

Shareholders have been recommended to knock back paying around 120 staff a minimum of £7.65 when the club holds its annual general meeting next month.

But a fans' group representing some small shareholders has lodged a resolution for the agm to implement the Living Wage, which is £1.05-per-hour more than the minimum wage for workers over 21.

It emerged last week that Celtic chief executive Peter Lawwell has received nearly £1million in annual salary, around £400,000 of which was in bonuses.

The Scottish champions also announced in September it had made an £11.2million pre-tax profit last season despite a significant drop in revenue.

The club has claimed it is an "excellent employer and engages with staff at all levels", adding it is the only UK club to achieve Investors In People status.

At last year's agm, chairman Ian Bankier claimed it cost Celtic around £500,000 to implement. Retail, ticketing, catering and stewarding staff, including many who are full time, would be the expected beneficiaries.

Representatives of the Scottish Living Wage Campaign have called on the club to reverse the recommendation.

Peter Kelly, chairman of the campaign and head of the Poverty Alliance, said: "We know that Celtic are a rich club and can afford to ensure their staff aren't paid poverty wages.

"Two-thirds of children in Scotland in poverty are in working households and the Living Wage is one of the best ways to help lift these families out of poverty."

Dave Moxham, deputy general secretary of the STUC, said: "Given we are securing some significant gains for the Living Wage from employers far less stable and charitable in outlook than Celtic its an enormous disappointment that given its wage structure its not been seen fit to mete out better treatment to hard-working employees."

Labour MSP James Kelly has also written to Mr Lawwell, outlining the economic case for the living wage, claiming raising workers' pay improves performance.

He said: "It appears the board intend to recommend shareholders vote against the resolution. I believe that would be a mistake.

"I hope Celtic listen to the growing campaign, think again, and use their status as a world famous football club to show the benefits of better, fairer pay." 

The Celtic Trust, which is behind the resolution, said the Investors In People status had nothing to do with wages and cast doubt on Celtic's costing of the pay award.

Jeanette Findlay of the group said: "For the second year running the Celtic board have shamed themselves and the supporters by refusing to become a Living Wage employer. Their excuse for this is no better than they won't pay because they don't have to.

"We know Celtic are doing very well financially. Our own chief executive pocketed pennies short of £1million this year and yet they are refusing to pay the lowest paid the relatively small sum of £7.65.

"In what way are they 'more than just a club'?"

In response to the resolution, the Celtic board said: "The company offers a competitive range of employee benefits, including a bonus scheme for all permanent employees, with up to 20% achievable by even the most junior of colleagues.

"We also offer a pension scheme with generous employer contributions starting at 7% of salary, a comprehensive company sick pay scheme, life assurance for all permanent staff, and a range of free or discounted medical and healthcare schemes."

It added: "The board will continue to review the company's remuneration policy on an ongoing basis, but considers that in order to act in the best interests of the company at this time, particularly given the economic uncertainty of Scottish football, it must retain control of its remuneration policy, while respecting all legal obligations and continuing to act in accordance with the standards we have set as an employer and which have been acknowledged through our Investor in People status.

"Accordingly, the board recommends that you vote against this resolution."