Six practical actions for setting and reaching Living Wage targets

With more than one billion working people (a third of the global workforce) struggling to earn enough for a decent standard of living, ensuring a living wage is paramount to our achievement of the 2030 Agenda.

This week, the United Nations Global Compact is celebrating the 75th anniversary of the Universal Declaration of Human Rights by inviting businesses to join the Forward Faster initiative and commit to Living Wage: Target 1.?

By committing to Living Wage: Target 1, your organization is pledging that 100 per cent of employees across your organization earn a living wage by 2030.?

Here is a proposed roadmap with practical actions to implement the Forward Faster target on living wage:?

1. Understand the concept of the living wage and how it relates to legal or negotiated minimum wages. The living wage concept in business means going beyond legal minimums, ensuring fair compensation for employees. It represents income for basic needs and decent standards of living, contributing to the global movement towards social sustainability and ethical labour practices.

2. Secure endorsement and support of senior leadership to implement the commitment that 100 per cent of employees across the organization earn a living wage by 2030.? Senior leadership support for a 100 per cent living wage by 2030 is critical. It signals a top-down commitment to social responsibility, enhancing reputation and attracting socially conscious clients and customers throughout the supply chain and business operations.

3. Identify gaps between current wages paid to direct employees and credible living wage estimates, taking into account geographic locations. Analyzing wage gaps and considering geographic variations ensures a realistic living wage commitment. Tailoring strategies to various regions aligns your organization with greater transitions towards social sustainability while supporting local economic development.

4. Engage with workers and their representatives. The implementation of living wages cannot be developed in a top-down manner without due consultation with workers and their representatives. Trade unions should play a role in wage discussions at enterprise level. Companies need to acknowledge the role of social dialogue in the wage-setting process to ensure that wages and working conditions are influenced by networks of worker representatives, worker committees, enterprise councils and trade unions.?

5. Set clear, time-bound targets and develop and implement a clear and transparent strategy and payment process to address wage gaps to achieve your living wage commitment. This involves openly communicating the strategy to address wage gaps. Clarity ensures accountability and helps employees understand the steps being taken to fulfill the commitment. A well-defined strategy, coupled with transparent processes, promotes trust, aligning with the principles of sustainability and demonstrating a commitment to fair compensation practices within the organization.

6. Conduct ongoing monitoring and update wage levels. Have a process in place to regularly review wages and address any instances of payment that are below the cost of living estimates. This process should also ensure that consistent, full and timely payment of wages has been made to all workers.

By implementing these practical measures, your organization can contribute to SDG 8. Join us by committing to Living Wage: Target 1 and move #ForwardFaster towards a more equitable, sustainable and just future. ?