Living wages are one of the most important concerns in the eyes of consumers and are the subject of many civil society campaigns. There are many challenges in determining whether workers are paid living wages and methodologies are still evolving. Good On You incorporates a number of benchmarks in our methodology, but we recognise that not all regions are covered by existing benchmarks.
What it means to pay a living wage
A living wage is generally agreed to be a wage which will allow a worker and their family to afford a decent standard of living. Elements of a decent standard of living include food, water, housing, education, health care, transport, clothing, and other essential needs—including provision for unexpected events.
Providing evidence for living wage
Do not state that your workers are paid a living wage without providing evidence to support it. Where there is an accepted benchmark—for example, where the Asia Floor Wage Alliance or The Global Living Wage Coalition method has been applied—indicate whether the wages are in line.
In other cases, demonstrating the payment of living wages can be done by publicly stating that workers are paid X times the legal minimum wage, which, according to the workers and the suppliers, is equivalent to or greater than a living wage.
Best practice on wages is public disclosure
We recognise that living wages will often take time to implement. In this case, it’s best practice to disclose to your customers what work you are currently doing to improve wages, even if it isn’t yet a living wage.