This website provides an overview on the groundbreaking ACT initiative for Cambodia’s garment and footwear sector to support the industry and set a new standard for growth and sustainability.
A new model for supply chain industrial relations in Cambodia | Good practice case study for the Global Deal (ILO/OECD)
Action, Collaboration, Transformation (ACT)
This case study explores how ACT has helped establish a framework for brand-supported collective bargaining agreements (CBAs) to improve working conditions and wages in Cambodia's garment, footwear, and travel goods (GFT) industry, creating a blueprint for the industry and for other supply chains.
Signed between ACT corporate signatories and IndustriALL Global Union, the ACT MoU provides the basis of ACT’s work on paving the way for living wages for workers in the global textile and garment industry supply chains through mature industrial relations, freedom of association and collective bargaining.
As a building block to work towards living wages, the ACT Global Purchasing Practices Commitments cover the five areas where the biggest impact on wages and working conditions was identified and lay the foundation for country support commitments specified through negotiations with national social partners, such as the binding purchasing practices commitments signed as part of the Binding Support Agreements for Cambodia.
The ACT labour costing protocol outlines the agreed standard on calculating and ring-fencing labour costs during price negotiations. The ACT Labour Costing Protocol is implemented by ACT member brands as part of the obligations under the Global Purchasing Practices Commitments and provides the starting point for the commitments on labour costing in the Binding Support Agreements for Cambodia.
ACT Accountability & Monitoring Framework on Purchasing Practices
Action, Collaboration, Transformation (ACT)
The ACT Accountability and Monitoring Framework is a set of jointly negotiated and agreed tools that stand out as the most comprehensive framework to assess purchasing practices of the industry.
Based on the ACT Accountability and Monitoring Framework, this report summarizes the progress measurement and reporting on ACT Global Purchasing Practices Commitments, comparing 2023 with 2021. The ACT Purchasing Practices Surveys for brand employees and suppliers and manufacturers are the largest monitoring tools in the global garments, textiles, and footwear industry.
Freedom of association, grievance mechanisms and purchasing practices – The power of integrated supply-chain industrial relations | Global Deal Flagship Report 2022
Action, Collaboration, Transformation (ACT)
This case study describes how cooperation between ACT and its partners led to the creation of an effective grievance mechanism at industry level to handle the settlement of disputes on freedom of association and collective bargaining rights. Locally negotiated between the social partners in Myanmar, supported by the International Labour Organization (ILO), and globally embedded into the compliance standards of participating brands, the Myanmar Freedom of Association Guideline and its Dispute Resolution Mechanism represented a groundbreaking model for effectively implementing and enforcing Core Labour Standards in the supply chain and operationalizing the UN Guiding Principles effectiveness for criteria for non-judicial grievance mechanisms.
ACT Flagship Report: New Report: A Paradigm Shift for Higher Wages
Action, Collaboration, Transformation (ACT)
This ACT report tells the story of the brands, employers and trade unions in Cambodia who made history in achieving the first-ever brand-supported collective bargaining agreements in global supply chains.
ARI database of Anker Methodology® Living wage and Living Income estimates
Anker Research Institute (ARI)
Global database of high quality, internationally comparable living wage and living income estimates based on the Anker Methodology®. All estimates and associated reports are downloadable for free and updated annually.
Living Wages Around the World: Manual for Measurement
Anker Research Institute (ARI)
Richard Anker and Martha Anker’s seminal book describing the Anker Methodology® including conceptual framing and methodological reasoning and approach.
Gender Pay Gaps in Global Supply Chains: Findings from Workplaces in Bangladesh, Colombia, Morocco, Thailand and Turkey
Anker Research Institute (ARI)
Research report synthesizing findings from in-depth research with agrifood and garments companies in 5 countries using ARI’s gender pay gap methodology.
Analytical paper investigating and disputing the argument that migrant workers have lower living costs than national workers and therefore require a lower living wage.
The Fair Work Monitor, developed by CNV Internationaal, captures the voices of workers in sectors such as textile, sugarcane, palm oil, and mining. The data gathered by the monitor provides direct insight into the working conditions on the ground. The Fair Work Monitor collects data through participatory digital surveys and monitoring rounds in collaboration with local unions. Workers and their unions analyse and interpret the data themselves, supported by a dedicated team of data experts.
On this landing page you find more information about CNV Internationaal’s approach and work on living wage with concrete examples in sugar cane and textile
On this landing page you find more information about the Fair Work Monitor, a tool that has been set up to collect data on wages and working conditions in collaboration with unions. The data that we collect is used by unions for wage and CBA negotiations, shared with stakeholders in the supply chain and they form the basis for making action plans for individual companies, multi-companies, and sectors.
This observatory demonstrates results of the Fair Work Monitor as part of a labour and social rights project in the palm oil sector in Guatemala and Honduras in collaboration with Oxfam Novib.
Case Study Collective Bargaining in the Sugarcane Sector documented by IDH
CNV
This case study demonstrates how worker-driven data can support collective bargaining and social dialogue with positive results when it comes to closing the living wage gap in the sugarcane sector. Documented by IDH.
Living Wage is a Human Right - Business Strategies for Driving Progress
Ecovadis
Live Panel discussion with experts and industry leaders to unpack the barriers preventing large-scale adoption and strategies that create value for businesses, workers, shareholders, and communities alike. Seakers share insights on practical tools, policy frameworks, and collaboration models that can help companies turn commitments into action.
This webinar hosted by EcoVadis training partner CSRWorks introduces the concept of a living wage, the issues that surround it, and the role organizations can play in maintaining good working conditions. It also provides a brief overview of how Living Wage is covered in EcoVadis Ratings.
Common Framework for Responsible Purchasing Practices in Food (Food Framework)
Ethical Trading Initiative (ETI)
The Food Framework acts as a core reference document for promoting responsible purchasing practices in Food, Fishery and Farming industries. It provides a common language and structure for discussion and action, so that guidelines for different elements of the industry can be further developed.
Common Framework for Responsible Purchasing Practices in Manufacturing Industries (CFRPP MI)
Ethical Trading Initiative (ETI)
The CFRPP MI acts as a core reference document for promoting responsible purchasing practices in a variety of manufacturing based industries. It provides a common language and structure for discussion and action, so that guidelines for different elements of the industry can be further developed.
The ETI Base Code is founded on the conventions of the International Labour Organisation (ILO) and is an internationally recognised code of good labour practice. It is viewed as a global reference standard and is widely used as a benchmark against which to conduct social audits and develop ethical trade action plans. Payment of living wages is a key aspect to achieving the code.
FLA’s membership program is an accreditation system that holds companies accountable for upholding labor rights in their supply chains through rigorous standards, ongoing due diligence, and independent assessments. Membership includes access to FLA’s living wage tools.
FLA’s award-winning Wage Data Collection Tool and Fair Compensation Dashboard are practical, living wage resources that help companies identify the gap between what workers earn and what they need. Together, they enable standardized wage data analysis and support companies in publicly reporting on living wages across their supply chains.
Drawing on several years of member-collected wage data, FLA’s Wage Trends Reports offer a country-level view of wage patterns and the gap between prevailing wages and the living wage benchmark. These reports not only inform industry dialogue but also offer practical recommendations for brands to support progress toward closing the wage gap.
Drawing on several years of member-collected wage data, FLA’s Wage Trends Reports offer a country-level view of wage patterns and the gap between prevailing wages and the living wage benchmark. These reports not only inform industry dialogue but also offer practical recommendations for brands to support progress toward closing the wage gap.
FLA’s living wage projects in Vietnam and Bangladesh explore how brand purchasing practices, worker engagement, and local regulations influence wage outcomes in multi-buyer supply chains. Through factory-level research, wage data analysis, and evaluations of purchasing practices, the projects aim to identify practical pathways for closing the living wage gap and informing industry-wide strategies.
After more than a decade of developing living wage solutions, Fair Wear considers the key input areas required to realise sustainable living wages to be money, accountability, and social dialogue. These resources explore in detail Fair Wear approach to living wages.
Fair Wear's Labour-Minute Costing methodology calculates the fair labour cost per item by determining the exact time required for production and multiplying it by a fair labour rate. This approach ensures detailed transparency in production costs, identifying the portion allocated to labour. The methodology aligns wages with established benchmarks and involves regular stakeholder engagement to maintain fair wage practices. Monitoring and periodic adjustments are key, ensuring that the labour-minute costing remains accurate and fair in varying economic conditions.
The Fair Wear Foundation Wage Ladder is an easy-to-use online tool that allows the wages paid at any factory to be compared against a range of wage benchmarks. The Wage Ladder generates a clear, easily understandable graphic that shows where a factory’s wages fall short in comparison to these benchmarks.
Based on the labour minute costing calculators, Fair Wear developed a user-friendly web-based application called Fair Price. Fair Price is a tool that facilitates fact-based costing and shared responsibility between buyers and suppliers to ensure prices sufficiently cover all labour expenses, including when wages are raised. The tool captures all elements of labour costs. As such, it empowers factories and brands with the information they need to determine fair (fact-based & bottom-up) prices that are calculated with the actual prevailing labour costs in a factory.
Guidance for Fair Wear member brands that seek to push past competition law concerns and work together to make living wages a reality for garment workers.
Fair Wear Brand Performance Check – Living Wages indicators
Fair Wear Foundation (FWF)
Fair Wear assesses its member brands annually on several criteria related to the payment of a living wage in sites with cut-make-trim and ancillary processes (2.16, 3.10, 3.11, 3.12, 3.13).
This document contains all relevant information regarding our offer to business on Living Wages, including links to a list of Living Wage Reference Prices and our Guidelines for the Fairtrade Banana Bonus
L’Oreal: certified L’Oreal for ther own employees 2 years in a row; and provides support to have its strategic suppliers also become certified (2023 & 2024)
This report by IDH outlines a five-step roadmap to ensure living wages in Vietnam’s aquaculture sector. It emphasizes the importance of wage transparency, wage gap analysis, verification processes, closing the gap through collective bargaining and direct employer interventions, and sharing insights.
The Living Wage Estimate Finder is a web-based tool developed to support companies and suppliers in locating credible and region-specific living wage benchmarks. Designed to facilitate wage gap assessments in global supply chains, the tool provides access to datasets from recognized providers.
Recognition Process for Living Wage Benchmark Methodologies
IDH
This document outlines IDH’s formal recognition process for evaluating and validating living wage benchmark methodologies beyond the Anker approach. It describes a comprehensive 12-step assessment protocol involving self-assessment, remote investigation, and periodic review.
Auditing Guidelines for Verifying Living Wage Gaps
IDH
This updated version (3.0) of the IDH Auditing Guidelines provides a standardized methodology for conducting on-site audits to verify living wage gaps using the Salary Matrix tool. It outlines procedures for first-, second-, and third-party audits, focusing on uniformity, transparency, and data accuracy.
Base Report for Auditors Verifying Living Wage Gaps
IDH
This document provides the standard format (Version 3.1) for third-, second-, and first-party auditors to complete during on-site verification of living wage gap calculations using the Salary Matrix tool.
The Living Wage Action Guide provides a user-friendly platform for companies and stakeholders to explore the various interventions and challenges associated with reducing living wage gaps. This tool highlights the roles of various actors and provides learnings and tips.
The Living Wage Platform – Insights page by IDH serves as a knowledge hub featuring articles, best practices, case studies, and reflections from companies, experts, and auditors working on living wage implementation.
The Roadmap on Living Wages offers a comprehensive step by step toolkit to help companies close living wage gaps in global supply chains. It outlines a five-step approach: identifying living wage benchmarks, measuring wage gaps, verifying calculations, implementing strategies, and sharing learnings.
The IDH Salary Matrix is a digital tool designed to help companies calculate living wage gaps within their supply chains. By comparing workers' total remuneration to relevant living wage benchmarks, the tool facilitates wage transparency.
This visual and conceptual guide from IDH explains the differences between the concepts of Living Income (LI) and Living Wage (LW), focusing on who they apply to, how remuneration is measured, and how benchmarks are established.
This report details Lidl Netherlands' efforts to close the living wage gap for over 10,000 plantation workers in its banana supply chain. In collaboration with IDH and FLOCERT, Lidl developed a four-step project cycle.
Understanding lead company engagements on living wages: a quick review
ISEAL
This briefing note shares insights and learnings from a series of semi-structured interviews ISEAL conducted with fourteen leading, global companies engaged in living wage actions.
This document responds to the need for a clear framework to guide claims-making on living wages. It serves to guide those who wish to make claims thoughtfully and to promote awareness about what makes claims credible.
Freely available map of living wage estimates across the U.S. that are always maintained to meet global best practice, be IDH compliant, and align with ILO guidelines on estimating a living wage.
The total remuneration assessment not only helps employers understand gaps to a living wage but also creates suggestions for cost-effective pathways to close those gaps.
Living Wage for Us has created a continual improvement standard with two tiers of certification. They support employers with ongoing guidance and implement an audit free worker voice grievance system.
NewForesight Consulting (NFC) support organizations in closing the Living Wage gap through fair pricing and sourcing analysis, sector-wide commitments, and tailored strategies to redistribute value.
OECD (2024), Handbook on due diligence for enabling living incomes and living wages
OECD
The handbook guides companies on how to use the OECD due diligence framework for achieving living incomes and living wages in global supply chains, focusing on agriculture, garment and footwear sectors.
Launch of OECD Handbook on Living Income and Living Wage Due Diligence – a webinar
OECD
A webinar held in Berlin and online in October 2024 to launch the OECD Handbook, as part of the Sustainable Agricultural Supply Chain Initiative Stakeholder Meeting.
The policy brief introduces the concept of a living wage, discusses key measurement criteria and distils the main recommendations from Balestra et al. (2023).
The OECD WISE Centre is steering and contributing to the activities of the IPSP Working Group on Living Wages. The group focuses on benefits/impacts, barriers/enablers, and informal earnings.
Provides a comprehensive view of Peterson’s Living Wage services, including methodologies, use cases, and our partnership with WageIndicator.
Coming soon
Living Wage Certification Standard
Peterson Control Union
Introduces the step-by-step third-party verification standard co-developed by Peterson, based on ILO, UNGP, and IDH methodologies.
Coming soon
Living Wage Data & Analysis Tools
Peterson Control Union
Our in-house data collection and visualization platforms support decentralized supply chains in identifying wage gaps and modelling realistic improvement plans.
Coming soon
Case Studies (Various Sectors)
Peterson Control Union
Real-life examples across sectors (e.g. palm oil, global manufacturing, farming) demonstrate our approach to data collection, benchmarking, gap closure, and policy integration.
Coming soon
Align Tool
Rainforest Alliance (RA)
ALIGN is a platform that gives access to resources on living wage including a source map and a step-by-step action process guide.
Tackling Inequality: An Agenda for Business Action
Shift
Helps contextualise living wages among other actions businesses need to take to tackle inequality, and understanding inequality as a systemic risk to business and people.
A menu of indicators related to the value proposition, the value chain and the cost structure that could be putting people at risk. Specifically flags 1, 2, 15, 17, 18, 23 relate to living wages.
SAI can help analyze the current wages of a company’s workers and contractors in key countries, assess the costs and benefits, and measure potential gaps.
SAI will work with leadership to identify priority areas, assess risks, and advise on strategies for implementing living wages throughout a company or supply chain.
A comprehensive review of tools, methodologies and best practices designed to help companies address the living wage.
Coming soon
TOLSON 2025 Living Wage in the Supply Chain
TOLSON Consulting
TOLSON's most recent peer-to-peer discussion about extending living wage policies to the supply clain, illustrated by concrete case study from Unilever.
Coming soon
TOLSON Living Wage Practical Guide
TOLSON Consulting
Practical and short guide to help companies understand nuances between initiatives, compare methodologies and identify frameworks.
Publication: How to use social performance insights for decision making (working title)
World Business Council for Sustainable Development (WBCSD/ BCTI)
Practical guide to help companies with a methodology to make better informed decisions on Living Wage activities by gaining insights into social impact and business performance.