The concept of a living wage has gained significant attention in recent years as a way to ensure that workers are able to earn enough to meet their basic needs and have a decent standard of living. A living wage is different from the minimum wage, which is the minimum amount that employers are legally required to pay their employees. A living wage is based on the actual cost of living in a particular location and considers factors such as housing, food, transportation, healthcare, and education.
Based on this underpinning, IDH developed a new resource under the Roadmap on Living Wages, which is the Living Wage Action Guide which aims to support companies to close the living wage gap. The recently released action guide on living wages provides practical guidance and tools for companies and other key stakeholders towards the payment of living wages.
"We developed the Living Wage Action Guide with the aim to keep supporting companies to progress living wages in their supply chains," said Carla Romeu Dalmau, Senior Innovation Manager, Better Jobs at IDH. "Using the IDH Living Wage Roadmap as a guideline, the Action Guide is linked to step 4 of the Roadmap: taking action to close living wage gaps in supply chains. The online Action Guide offers practical tips, case studies, sectoral information, and much more to support companies on their journey towards a living wage. We hope the Living Wage Action Guide will help companies make more informed decisions on how to close their living wage gaps and support the efforts of creating a living wage economy worldwide."
Appropriate actions
"The Living Wage Action Guide aims to guide buyers, their suppliers, and other relevant actors towards the most appropriate actions they can take to close living wage gaps," the team explains. Companies can use the Guide to navigate the challenges inherent in efforts to achieve living wages in supply chains and discover specific steps they can take to address these challenges and create the enabling conditions for living wages to be paid.
"A key aspect of the Living Wage Action Guide is the emphasis on the need for a holistic approach to implementing living wage initiatives. This includes considering the needs and perspectives of all stakeholders, as well as the broader context in which living wage gaps are addressed," they continue.
"Overall, the Living Wage Action Guide provides a comprehensive and practical approach and offers valuable guidance and tools for those who are interested in ensuring that workers earn a living wage. By promoting living wages, we can help to create more sustainable and inclusive societies and ensure that all workers are able to lead decent and dignified lives."
For more information:
IDH
idhsustainabletrade.com