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Driving the living wage agenda: IDH’s commitment to making living wages mainstream

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We believe that living wage is a key element in solving several of today's social development challenges, from reducing inequality to advancing human rights and driving economic empowerment.

IDH is focusing its efforts across global platforms, advocating for living wages to be recognised as an essential pillar of sustainable economic progress. Through strategic partnerships, sector-wide collaboration, and practical tools, IDH is helping turn commitment into action, supporting companies, governments, and civil society in embedding living wages into global value chains.

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Why living wages matter 

Global inequality is rising, undermining progress on social development, social cohesion, and human rights. Recent evidence, including the World Social Report 2025 and the World Inequality Report 2026, shows that income and wealth gaps continue to widen, while nearly 60% of workers worldwide face employment insecurity. 

The ILO’s Global Employment and Social Trends 2026 report further highlights that 284 million workers still live in extreme poverty (less than US$3 per day). Together, these trends threaten inclusive growth, social stability, and the global commitment to leave no one behind. 

Against this backdrop, living wages are one of the most practical, action-oriented responses to rising inequality, linking decent work, poverty reduction, and economic resilience. 

Read our latest article exploring the evidence and what it means for living wages. 

Living wages recognised at the UN: A global turning point

After sustained advocacy, living wages have been included in the Second World Summit for Social Development political declaration. The Doha Political Declaration now recognises living wages as essential for raising living standards and promoting inclusive growth, marking a critical step toward turning commitment into concrete action.

This is a vital step toward ensuring decent work and a just transition for all.  

Exactly one year ago, the World Benchmarking Alliance (WBA) inaugural Social Benchmark revealed a stark reality: only 4% of the world’s 2,000 most influential companies pay – or have a target to pay – their workers a living wage.  

That’s why IDH, together with WBA – and in collaboration with United Nations Global Compact, The Business Commission to Tackle Inequality, Unilever, Shift Project and the Platform Living Wage Financials – issued a multi-stakeholder call to action urging UN Member States to prioritise living wages in the WSSD2 process. This milestone reflects a growing global consensus: living wages must become the norm, not the exception. 

Can business be a force for social good?

The size of the challenges we face demands bold, systemic change. And while governments and civil society play critical roles, the private sector holds unique power to drive inclusive and sustainable growth. Business decisions already shape social outcomes for hundreds of millions of people. With over 80% of global trade flowing through value chains that provide livelihoods for more than 450 million people, there can be no doubt that how businesses source, pay, and invest determines whether growth is inclusive or exclusive.

Read about how prioritising social good can lead to shared prosperity

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From commitment to implementation: What works 

Evidence increasingly shows what is possible when action is coordinated: 

  • In banana-producing countries, multi-stakeholder initiatives have raised wages for thousands of workers. 
  • Across Europe, retailers are adjusting purchasing and sourcing practices to help close living wage gaps in their supply chains. 
  • In agricultural sectors such as sugarcane, collective bargaining and employer engagement have contributed to measurable wage improvements and safer working conditions. 
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Living wages as a human rights and resilience imperative

Human rights are a core driver of business resilience. If we want resilient supply chains and fair outcomes for people, living wages must be at the centre.

Read more about the joint work by the UN Global Compact and IDH as long-term partners in driving industry-wide progress on living wages in this article.

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Ensuring a living wage is both a fundamental human right and a strategic investment in stronger, more resilient businesses. When companies put people at the center of their operations, they unlock productivity, loyalty, and sustainable growth. Leading on living wages means leading the way forward faster.
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Chris Kip– Head, Social Sustainability at UN Global Compact

Living wages for socio-economic development

The discussion around the living wage concept has gained global momentum, influencing policies and shaping business strategies in meaningful ways. During a recent webinar, the World Benchmarking Alliance and IDH explored how the concept of living wages has evolved, the key initiatives driving it forward and where it’s headed next. 

Watch the webinar, and hear from speakers as Charlotte Bernard, Ministry of Foreign Affairs, Netherlands; Fransje Putts, MN (Platform for Living Wage Financials) Marina Leal, Natura & Co.; Matteo Squire, Unilever; and Maurice van Beers, CNV about their insights on this growing movement.

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In general, human rights issues are hard to quantify. In finance, there’s a lot of focus on numbers, and living wages are one of the few human rights topics that can actually be quantified. This helps everyone to work toward the same goal. Being able to quantify living wages also provides a measure of what companies are doing and shows where the gaps for a broader implementation of human rights are.
Fransje Puts– Client Manager & Advisor Responsible Investment at MN
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IDH works with diverse sectors to drive action and shares knowledge to enable global collaboration.

Keep living wages on the global agenda 

Building on the recognition of living wages within the Doha Political Declaration as essential for raising living standards and promoting inclusive growth, WBA and IDH, alongside partners including the United Nations Global Compact, the Business Commission to Tackle Inequality, Unilever, Shift, and the Platform Living Wage Financials, will continue working to keep living wages on the global agenda and move from commitment to implementation. We invite all stakeholders, from businesses and investors to policymakers and civil society, to stand with us.  

Support the call to action. 

Find us at our next living wage events:

Living wages for social justice: Insights and next steps from the World Social Summit

This CSocD64 side event will highlight how living wages can drive transformative change. It will explore the respective responsibilities of governments and the private sector, and how coordinated, multistakeholder action can accelerate implementation. 

  • Wednesday, 4 February I 17:30 – 18:30 (11:30–12:30 EST)
  • Co-organised with the United Nations Global Compact, the World Benchmarking Alliance and the World Business Council for Sustainable Development
  • Register here

Collective Action for Social Justice: Advancing Living Wages in Global Supply Chains

In recognition of the World Day of Social Justice, we invite you to an interactive webinar exploring how collective action accelerates progress on living wages, a core driver of social justice and decent work. You'll hear from leaders on buyer commitments to enhance wages, producer efforts, and what it takes to drive credible, scalable progress on living wages.

  • Friday 20 February | 14:00–15:45 CET (8:00-9:45 Eastern Time)
  • Register here
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At IDH, we believe that living wage is a key element in solving several of today's social development challenges, from reducing inequality to advancing human rights and driving economic empowerment. Achieving living wages is not just a goal but a shared responsibility. We work closely with businesses, civil society, and international organisations like the ILO and UN Global Compact to advance living wages on the global stage and to create lasting positive impact on workers' livelihoods. From agriculture to aquaculture, we support companies on the ground with practical tools, tailored guidance, and local-to-global convening. Our role is not to claim answers, but to help turn commitment into action. 

Check the Living Wage Roadmap for more information.