Living Wages: Action that pays

Across global business, the gap between ambition and action on living wages remains significant. Recent insights from the World Benchmarking Alliance reveal that fewer than 5% of major companies guarantee a living wage for their own workforce and less than 3% actively support suppliers to do the same. Yet, amidst this challenge, there is cause for optimism. Over the past year, a growing number of companies have begun to disclose clear pathways to living wages for direct workers, with some extending these commitments into their wider value chains. 

Imagine the impact if more businesses followed suit. 

In our latest webinar on living wages, organisations shared real-world examples of decisive action, illustrating how advancing living wages can deliver tangible benefits for both workers and business performance. The discussion highlighted practical steps and tools for moving from aspiration to implementation, reinforcing that living wages are not only a moral imperative but a business one.

1. Living wages are becoming a business imperative in a shifting global landscape 

There is a growing consensus that living wages are fundamental to both social justice and resilient value chains. Closing wage gaps reduces poverty and inequality while driving long-term business performance. International guidance and legislative developments are accelerating this momentum, signalling a clear shift: Living wages are moving from voluntary leadership towards mainstream expectation. 

2. Decisive action with clear benefits 

Many organisations are moving decisively into action, combining sustainable sourcing, voluntary contributions, wage progression plans, and supplier capability building. These measures are closing wage gaps and improving worker wellbeing across global value chains, and speakers also highlighted clear business benefits such as strengthened long-term supply security.  

3. A strengthened roadmap to move from ambition to action 

We shared the updated IDH Living Wage Roadmap, refining five key steps to help organisations move efficiently from curiosity to commitment and action. 

Strongly endorsed by the ILO, the UN Global Compact, the Dutch government, and leading businesses, the Living Wage Roadmap plays a central role in aligning expectations, harmonising tools and scaling credible action across global supply chains. 

4. Practical tools enable credible progress

Clear measurement and consistent methodologies are critical. Harmonised approaches support transparency, enable constructive dialogue between buyers and suppliers, and build the foundation for collaborative solutions.  

The redesigned Salary Matrix strengthens this process by offering clearer, faster and more consistent measurement of living wage gaps, through simplified inputs and modular add-ons for auditing. 

5. Collaboration is critical to overcoming challenges

Navigating local labour realities, differing wage estimates, and supplier concerns requires trust, transparency and long-term engagement. Panellists emphasised that partnership and dialogue with suppliers, workers and unions is essential, and that the benefits make the effort worthwhile. 

The gap between ambition and action on living wages is closing, but there is much more work to be done. The question is no longer why; it is how quickly your organisation can act. 

The recent webinar made one thing clear: Living wages are achievable, measurable, and good for business. The next step is to turn this insight into action.