John Park, who represents Mid Scotland and Fife, said the change would help thousands of families across Scotland currently affected by "in-work poverty".
It would help them "meet the increasing pressure on household budgets" in a "time of economic uncertainty", he said.
Staff who work directly for the Scottish government are paid the living wage and under the proposals Mr Park is spearheading, this would be extended to anyone working for a private company under a public sector contract.
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Mr Park is launching a consultation on his Living Wage (Scotland) Bill and said he is supported by trade unions, student groups, voluntary organisations and migrants' groups.
The campaign for a living wage in Scotland has been supported by Glasgow City Council, Scottish Enterprise and Employers in Voluntary Housing.
Mr Park said: "Six out of 10 Scots children live in families suffering from in-work poverty. I believe that if we do not take action on this issue then we are letting down thousands of low-paid, hard-working Scots."
Ministers say they have been advised that forcing a living wage as part of contracts would breach European Union law. But Mr Park said he has legal advice which says it would not.
The public sector in Scotland spends more than £9bn a year procuring private sector goods and services.
(NE/GK)
