ACCA-維持生計的工資：對可持續(xù)發(fā)展至關(guān)重要 A LIVING WAGE CRUCIAL FOR SUSTAINABILITY

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ALIVINGWAGE

CRUCIALFORSUSTAINABILITY

AboutACCA

WeareACCA(theAssociationofCharteredCertifiedAccountants),agloballyrecognisedprofessionalaccountancybodyprovidingqualificationsandadvancingstandardsinaccountancyworldwide.

Foundedin1904towidenaccesstotheaccountancyprofession,we’velongchampionedinclusionandtodayproudlysupportadiversecommunityofover252,500membersand526,000futuremembersin180countries.

Ourforward-lookingqualifications,continuouslearningandinsightsarerespectedandvaluedbyemployersineverysector.Theyequipindividualswiththebusinessandfinanceexpertiseandethicaljudgmenttocreate,protect,andreportthesustainablevaluedeliveredbyorganisationsandeconomies.

Guidedbyourpurposeandvalues,ourvisionistodeveloptheaccountancyprofessiontheworldneeds.Partneringwithpolicymakers,standardsetters,thedonorcommunity,educatorsandotheraccountancybodies,we’restrengtheningandbuildingaprofessionthatdrivesasustainablefutureforall.

Findoutmoreat

AboutShift

ShiftistheleadingcenterofexpertiseontheUNGuidingPrinciplesonBusinessandHumanRights.

Ourglobalteamofexpertsworksacrossallcontinentsandsectorstochallengeassumptions,pushboundaries,andhelpredefinecorporatepractice,inordertobuildaworldwherebusinessgetsdonewithrespectforpeople’sdignity.Weareanon-profit,mission-drivenorganization,headquarteredinNewYorkCity.

Moreinformationishere

AboutForvisMazars

ForvisMazarsisaleadingglobalprofessionalservicesnetwork.

Thenetworkoperatesunderasinglebrandworldwide,withjusttwomembers:ForvisMazarsLLPintheUnitedStatesandForvisMazarsGroupSC,aninternationallyintegratedpartnershipoperatinginover100countriesandterritories.

Bothmemberfirmsshareacommitmenttoprovidinganunmatchedclientexperience,deliveringaudit&assurance,taxandadvisoryservicesaroundtheworld.Together,ourstrategicvisionstrivestomoveourclients,people,industryandcommunitiesforward.

Throughourreachandinsight,wehelporganisationsrespondtoemergingsustainabilityissuesintheglobalmarketplaceincludinghumanrights,climatechange,environmentalimpactsandculture.

Copyright?September2024bytheAssociationofCharteredCertifiedAccountants(ACCA),MazarsLLPandShiftProject,Ltd(Shift).Allrightsreserved.UsedwithpermissionofACCAandForvisMazarsLLPandShift.Contact

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forpermissiontoreproduce,storeortransmit,ortomakeothersimilarusesofthisdocument.

ALIVINGWAGE–

CRUCIALFORSUSTAINABILITY

Thecost-of-livingcrisisoflate2021to2023hasaffectedalmostallgeographiesandgenerations,andgenders.Strikesandprotestsbyworkersandcommunitiesdemonstratehowmuchthisissuehasaffectedthem.Cost-of-livingconcernshavebecomeakeyissueinpoliticalelectionsaroundtheworldduring2024.Inequalitycontinuestoriseandthreatenssocialstability.

Astheworldgrappleswiththeimpactsofworseningclimateandnature-relatedcrisesamidincreasinginequality,theworst-affectedsegmentsofsocietyarelikelytobethosewhoearntheleast.Yet,thepaymentofwagelevelsthatarebelowwhatworkersneedforadecentstandardoflivingisnotadequatelyaddressedasasustainabilitymatterbyorganisations,despiteitsstronglinkagetotheachievementofseveralUNSustainableDevelopmentGoals.

Usingtheinsightsofmorethan1,000surveyrespondentsandroundtablediscussionsandinterviewswithmorethan50accountancyandfinanceprofessionalsfromacrosstheworld,manyofwhomaremembersofACCA,thisreportlooksattheconceptofalivingwageasaresponsetothisissue.

Thisreportisnotadetailedexplanationofhowalivingwagecanbecalculated;rather,itdescribeswhyitisneededforaddressingsocialconsiderationsinsustainabilityandtheroleoffinanceandaccountancyprofessionalsinprogressingthepaymentofalivingwageintheirorganisationsandthewidervaluechain.

Summariesofthesurveydataareavailable

online

.

4

Foreword

HelenBrandOBE

ChiefExecutive,ACCA

CarolineRees

PresidentandCo-Founder,ShiftProjectLimited

Extraordinarilyhighlevelsofinequalityarenowasystemicriskto

economiesandsocieties.Inequalityhasbeencompoundedbythe

recentcost-of-livingcrisis,andconsequentlystrikesandprotestshavebeenwitnessedthroughouttheworld.EstimatesfromtheBusiness

CommissiontoTackleInequality(BCTI)suggestthattherearenow

overonebillionworkersearninglessthantheyneedtoaffordadecentstandardofliving.Thisisuntenable,yetthesubjectofwagesrarelygetsmentionedinsustainability-relatedconversationsandpriorities.

Thisresearchbringstolightstrongevidencethatfinanceandaccountancyprofessionals

recognisetheimportanceofalivingwageandappreciateitslinktosustainability.Theyseeitasnotonlytherightthingtodofromanethicalperspective,butequallyasamatterof

fundamentalhumanrights.Nonetheless,whiletheyrealisetheirsharedresponsibilityand

abilitytoinfluencethelikelihoodthatlivingwageswillbecomecommonplace,thereality

remainsthatlargenumberofworkersdonotearnsufficienttohaveadecentstandardof

living.Thisisacalltowhichtheprofessionmustrespond.Ascustodiansofvalue,theymustalsolooktoextendthescopeoflivingwagepaymentstothosebeyondtheirownentity’s

workforcebyencouragingitssupplierstodothesame.

Importantly,livingwagesactasasocio-economicmultiplier.Theyallowworkersandtheir

householdstoenjoyadecentstandardofliving,betteraccesstonutrition,healthand

education.Inturn,theybringtremendousbenefittoorganisationsfromamoremotivated

andproductiveworkforce,lowerstaffturnoverandrisksofforcedlabour,improvedfinancialperformanceandvaluechainresilience.Atamoremacrolevel,theincreasedconsumption

spendingthatwillprobablyresultfromlivingwageswilltendtoencourageeconomic

growth,reducedgovernmentspendingonsubsidies,lowerbriberyandcorruptionrisksandimprovedsocialstabilitybyreducinginequality.

Livingwagesarealsogettingattentioninstandard-settingprocessessuchasthe

EuropeanSustainabilityReportingStandards(ESRS).Theprofessionshouldstayabreastofsuchdevelopmentsandunderstandhowtheycouldaffecttheirownorganisations.

Theprofessionneedstoexplorenewapproachesforhowitreportsthevalueofpeopleincorporatereporting.Theseactionshavethepotentialtostrengthenthemeasurementandreportingofthesocialdimensionofsustainability.

RichardKarmel

ManagingPartner–

London,ForvisMazars,UnitedKingdom

5

Contents

Executivesummary6

Callstoaction

9

1.Thecaseforalivingwage

13

1.1Whatisalivingwage?

13

2.Currentperspectivesonalivingwage

15

2.1Alivingwage

15

2.2Whyalivingwageisimportant

17

2.3Thelinkbetweenalivingwageandsustainability

21

2.4Significantfactorsthatwouldprogressthepaymentofalivingwage

22

3.Livingwagesasasocio-economicmultiplier

24

3.1Themultipliereffect

24

4.Roleoffinanceandaccountancyprofessionalsindealingwithalivingwage

28

4.1Responsibilityandaccountability

28

4.2Limitedperspectiveinencouragingthepaymentoflivingwageinvaluechains

28

4.3Newapproachesneededincorporatereportingonthevalueofpeople

30

Appendix1:Surveydemographics

32

Appendix2:Usefulresources

34

Acknowledgements

35

References

36

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|EXECUTIVESUMMARY

Executivesummary

Today,thesocialdimensionofsustainabilityhassurfacedasafast-risingagendathat

cannotbeignored.Inequalityisasystemicrisk,withtheWorldInequalityLabestimatingthatthetop10%ofearnersreceivenearly52%oftotalglobalpay,whilethelowest-paidhalfofworkersreceive8.5%(Chanceletal2021).

Therecentcost-of-livingcrisishascompoundedthis,withstrikes,protestsanddemonstrationsoccurringinboth

theGlobalNorthandSouthasworkersandcommunitiesstruggletoafforddaytodayessentialssuchasfood,

accommodation,energy,transportationandheating.

InternationalLabourOrganization(ILO)expertshave

opinedthatdecentwagesarecentraltoeconomicand

socialdevelopmentandjustice.Theyreducepovertyand

inequalityandallowworkerstohaveadecentanddignifiedlife.BCTIestimatesthatoverabillionworkersworldwide

(approximatelyone-thirdofallworkers)earnlessthantheyneedtoaffordadecentstandardofliving(BCTI2023).

ACCA’s

GlobalTalentTrends2024

(ACCA2024)report

alsofoundthatfinanceandaccountancyprofessionalsarenotsparedeitherwiththeimpactofinflationonrealwagesratedasthebiggestwork-relatedfear.

Whilethereisnosingleglobaldefinitionofalivingwage,basedonthedifferentarticulationsadoptedbynotable

organisations(forexample,ILO,GlobalLivingWage

Coalition),alivingwageessentiallyprovidesaworker

andtheirfamilywithadecentstandardofliving,includingdiscretionaryincomeorsavingsforfutureunexpected

events.Importantly,itshouldbebasedonnormalhoursofwork(excludingovertime)andisnotaone-size-fits-

allapproach.Inotherwords,itshouldconsiderlocalorregionaldifferencesinthecost-of-livingwithincountries.

Livingwageshavethepotentialtoactasamajorsocio-

economicmultiplierthatprovidesbenefitsacrossthe

eco-system–forworkers,employers,economiesand

governments.Itenablesworkersandtheirhouseholdstohaveadecentstandardofliving,accesstobetternutrition,health,educationandsavingsforfutureemergencies.

6

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|EXECUTIVESUMMARY

7

Theybenefitorganisationsbycreatingamoremotivated

andproductiveworkforce,improvingtalentretentionwhichlowersrehiringandretrainingcostsandeffort,reducing

forcedlabourincidencesandreputationalrisks,improvingfinancialperformanceandvaluechainresilience.

Atamoremacrolevel,theincreasedconsumptionspendingthatwilllikelyresultfromlivingwageswilllendtowards

economicgrowth(estimatedbyBCTItobeUS$4.56trillionadditionalGDPperannum)(BCTI2023),reducegovernmentspendingonsubsidies,lowerbriberyandcorruptionrisks

andreduceinequality.

Againstthiscontext,ourresearchexploredthecasefora

livingwage.Itinvolvedaglobalsurveywithmorethan1,000respondentsfrom93countriesaswellasroundtablesand

interviewswithparticipationfrommorethan50financeandbusinessprofessionals.

Thisreportoffersthefollowingkeyinsights:

nAmongglobalsurveyrespondents,89%recognisetheimportanceofalivingwagewhile82%seeit

aslinkedtosustainability.

nPayingworkersbelowalivingwageisinconsistentwithpreservingandenhancingthevalueofhumancapital.Businessandinvestorinitiativesinvolvingleadersfromacrossallregionsareincreasingly

highlightingtheimportanceofpayinglivingwagestoreduceinequalitiesandtherelatedrisksto

societies,economiesandfinancialsystems.

nEthicsandhumanrightsarewidelyseenbythe

financeandaccountingprofessionsasprimary

reasonswhylivingwagesareimportant.Notpayingalivingwageshouldbeunderstoodasahuman

rightsabuse,notdissimilartomodernslavery,

childlabouretc.

THEOVERWHELMINGRECOGNITION

THATALIVINGWAGEISIMPORTANTTOTHEACHIEVEMENTOFSUSTAINABILITYGOALSMAKESACOMPELLINGCASE

FORLIVINGWAGESTONOWFEATUREASPARTOFSUSTAINABILITY-RELATEDCONVERSATIONSATBOARDAND

SENIORMANAGEMENTLEVELS,ANDFORRELEVANTINTERNALFUNCTIONSTOPLAYTHEIRROLEINACHIEVINGPROGRESS.

Surveyrespondentssawthetopfactorthatwoulddrive

theirorganisationtocommittopayingalivingwageas

lyinginorganisationalleadershipseeingitasintrinsicto

asustainableoperatingmodel(60%).Thesecondhighest

factorwasleadershipwillingnesstopayalivingwage(56%).

Manyroundtableparticipantsfeltthataregulatorypushisimportantbeforemeaningfulchangecanhappen.

LegislativerequirementssuchastheCorporate

SustainabilityDueDiligenceDirective(CSDDD)whichmakesitmandatoryforlargecompaniesintheEuropeanUnion

(EU)(aswellasthosewithsignificantturnoverintheEU)

toaddresspotentialandactualhumanrightsimpactsin

theiroperationsandvaluechainswillputlivingwagesandresponsiblepurchasingpracticesonthecorporateagenda.

Whilesomeparticipantsinroundtablediscussionsraisedconcernsthatsomebusinesses–notablySMEs–maynotbeabletopaylivingwagesandstayinbusiness,87%of

surveyrespondentswhowerefromSMEssupportedtheimportanceofpayingalivingwagetotheirfullworkforce,includingcorecontractors.

Someroundtablediscussantsnotedthatbusinessmodelswithlowmarginsthatrelyonpayingbelowalivingwagetobeviableneedtobecriticallyredesignedbasedonvalue.

Mostsurveyrespondentsfeltthattheirorganisationshouldpayalivingwagetoitsownitsemployees(cumulatively

86%)andcontractors.However,onlyaminoritybelieveitistheirorganisation’sresponsibilitytoencourageitssupplierstopayalivingwagetotheiremployees.Thisstandsin

contrasttotheinternationalstandardsonhumanrightsduediligenceandrelatedlegislationadoptedrecentlyintheEU.

Regionalandinternationalreportingstandardsarestarting

toaddressissuesofhumancapital,andthistrendcanbe

expectedtocontinue.Financeandaccountingprofessionalsshouldstayabreastofsuchdevelopmentsandunderstandhowtheymayimpacttheirorganisations.

Progressingtowardspayingalivingwagewillrequirea

multiplicityofdifferenteco-systemactors.Setoutbelowareexamplesofactionsthatthefinanceandaccountancycommunitycanadvocatetorelevantstakeholders.

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|EXECUTIVESUMMARY

8

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|CALLSTOACTION

9

Callstoaction

Makinglivingwagesarealityispossible.Financeandaccountancyleadershaveatremendousopportunitytoadvocateforalivingwage.Keyactionstheycantakeinclude:

TABLEES1:Callstoactionforchieffinancialofficers(CFOs)/financedirectors/headsoffinance

CHIEFFINANCIALOFFICERS/FINANCEDIRECTORS/HEADSOFFINANCE

nUnderstandtheimportanceofandbusinesscaseforpayingalivingwage,aswellastheimplicationsiftheorganisationdoesnotdoso.

nBringtotheagendaofboardsandseniormanagementtheneedtoaddresswagesasafundamentalsustainabilityissue.Helpthemtoappreciatethatpayingalivingwagerequiresattentionalongsidediscrimination,modernslavery,childlabourandotherhumanrightsimpactsandshouldbetakenintoaccountintheorganisation’ssustainabilitygoals.

nSupportthebusinesscaseforalivingwagebyaholisticanalysisofthetotaleffectsonnon-salaryandwagesprofitandloss(P&L)itemsarisingfromnotpayingalivingwage.Theseitemsinclude:

?costofrehiringwhenunderpaidworkershavegoneelsewhere

?costofretrainingreplacementworkers

?productivitylossfromtalentattritionduringperiodsofrehiringandretraining

?presenteeism

?absenteeism

?lackofmotivationandcreativity;and

?mentalhealthandwell-beingissues.

nUselivingwageestimatesdevelopedbycredibleorganisationsthatmeetacceptedcriteriatoassessgapsinlivingwagesfordifferentcategoriesofworkacrossthevaluechain.

nRecommendatransitionplantowardspayingalivingwagefor:

?theorganisation’sownemployeesandcontractors;and

?workersintheorganisation’svaluechain–encouragesupplychainentitiestopayalivingwagetotheiremployeesandcontractors.ThisshouldstartwithTier1suppliersandprogressbeyond.

nPrepareandensureintegrityofdisclosuresunderESRSS1(whereapplicable).

nStayabreastofnewsustainabilityreportingstandardsfromtheInternationalSustainabilityStandardsBoard(ISSB)whichmayconsiderthisissue.

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|CALLSTOACTION

10

Progressingtowardspayingalivingwagewillrequireamultiplicityofdifferenteco-systemactors.Setoutbelowareexamplesofactionsthatthefinanceandaccountancycommunitycanadvocatetorelevantstakeholders.Theseareneitherexhaustivenorsequentialinnaturebutcomplementaryasawhole.Collectively,theymakeacompellingforceforchangingthelivesofmillionsofworkersaroundtheworldwhodonotearnsufficientlytohaveadecentstandardofliving.

TABLEES2:Callstoactionforgovernmentsandpolicymakers

GOVERNMENT/POLICYMAKERS

Engagewithgovernmentsandpolicymakersregardingtheneedandopportunityto:

nrecognisethatinequalityisafundamentalandsystemicrisktosocietywithsignificantrepercussionsifleftunaddressed.Ignoringthebasicneedsandaspirationsofsocietymaythreatenthelegitimacyandtrustofgoverningmechanismsinthecountry.Itmayalsoreducethestabilityofeconomiesandfinancialsystems

nrecognisetheirresponsibilityassignatoriestotheUniversalDeclarationofHumanRights,forensuringthatworkersareabletoearnwagesthatallowthem(andtheirhousehold)toliveanexistenceworthyofhumandignity(Article23oftheUniversalDeclarationofHumanRights)

nsocialisetheunderstandingthatwhenworkersarepaidlessthanalivingwage,evenifitisabovethelegalminimumwage,itrepresentsahumanrightsissue,suchasmodernslavery,forcedandchildlabour

npromotegreaterunderstandingoftheconceptofalivingwage(andthedifferencewiththelegalminimumwage)by

workingwithbusinessandinvestorcommunities,includingSMEs,supportedbytradeunions,workerrepresentativebodiesandhumanrights-basedorganisations

navoidthetendencytosetminimumwagesartificiallylowinordertobemore‘business-friendly’asthisplacesundueburdenonworkers(especiallythoseinthelowereconomicstrata).Recognisethatsubsidyprogrammesthataredesignedtohelp

alleviatethesepressuresaddadirectcostburdenonthegovernment’sfiscalposition

nusetaxationasapolicyinstrumenttoincentiviseemployerstopayalivingwage

nappreciatethesocio-economicmultiplierbenefitsthatalivingwagebringstoworkers,employers,theeconomyandpublicfinances;and

ndesignandimplementanationallivingwagepolicyand/orlegislativereformthatrecognisestheneedforalivingwage

basedonfactorsrelevanttokeylocations.Thisshouldincludeatransitionplantowardspayingalivingwageforallsectors.

TABLEES3:Callstoactionforindustrygroupsandemployerfederations

INDUSTRYGROUPS/EMPLOYERFEDERATIONS,ETC.

Engagewithindustrygroupsandemployerfederationsofwhichtheirorganisationisamemberto:

nhelpthemtounderstandthatnotpayingalivingwageshouldbeconsideredahumanrightsissue,justasmodernslavery,childlabour,discriminationandotherimpactsare.Thisshouldbetakenintoaccountbothintheorganisation’ssustainabilityjourneyandaspartofitsimplementationoftheinternationalstandardsonresponsiblebusinessconductandEUlegislation;and

nrecognisethevastsocio-economicmultiplierbenefitsofpayingalivingwageandactcollectively–andwithoutinfringingonanti-trustrequirements–totransitiontowardspayingalivingwageonanindustrybasisfor:

?members’ownemployeesandcontractors;and

?workersintheirvaluechains–encouragesuppliersandotherbusinesspartnerstopayalivingwagefortheiremployeesandcontractors.ThisshouldstartwithTier1suppliersandprogressbeyond.

11

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|CALLSTOACTION

TABLEES4:Callstoactionforinvestors

INVESTORS

Similartoexpectationsandobligationsonorganisationstoraisetheirclimateactionambition,advocatethatinvestorsshould:

nsupporttheirinvesteecompaniesto:

?assesstheLivingWageDeficit(section4.1)fortheirownworkforce,includingcontractorsandatleastthefirsttieroftheirsuppliers;and

?developtransitionplanstoclosetheLivingWageDeficit,ifany

nusethesocio-economicmultiplierbenefitsofalivingwage,andthesystemicriskstosocieties,economiesandfinancial

systemsposedbyincomeinequality,toinfluenceotheractorsintheeco-systemtoadvanceprogressonalivingwage;and

nincorporatelivingwagesasakeycriterionin:

?duediligenceexercisesaspartofinvestmentordivestmentworkflows;and

?thevaluationofportfoliocompanies

TABLEES5:Callstoactionforstandardsettersandaccountancybodies

STANDARDSETTERSANDNATIONALACCOUNTANCYBODIES

Encouragepublicandprivatestandardsettersandnationalaccountancybodiesto:

nconsiderexploringnewapproachestoassessingthevalueofpeopleincorporatereporting

nconsiderincludinginsustainabilitydisclosurestandardsreferencestoalivingwagewhichrequireorganisationsto

benchmarktheirwagelevelsrelativetoacrediblelivingwageestimateanddisclosehowtheyplantofurtherprogressthepaymentofalivingwage–bothwithintheirorganisationsandacrosstheirvaluechains.Thiswillallowformore

comprehensiveanalysisanddecisionmakingbymanagers,investorsandotherstakeholders;and

nsocialiseandeducatetheirmembersonthegrowingimportanceofaddressingsocialissuesaspartofenvironmental,socialandgovernance(ESG)considerations.Thisincludeslivingwagesbothaspartofthesustainabilityagendaandasakey

factorinriskmanagement.

TABLEES6:Callstoactionforcross-sectoralandmulti-stakeholderorganisationsthatadvocatebusinessandhumanrights

CROSS-SECTORALANDMULTI-STAKEHOLDERORGANISATIONSTHATADVOCATEONBUSINESSANDHUMANRIGHTS

Workwithrelevantcross-sectoralandmulti-stakeholderorganisationsto:

nadvocateforalivingwagetogovernmentsandbusinesses

nhighlighttheconsequencesoflowwagesforemployeesandtheirhouseholds,aswellasthesocio-economicmultiplierbenefitsofpayingalivingwage;and

nhighlightthatimplementationoftheEU’sCSDDDlegislationanditssustainabilityreportingstandardsshouldbringfocusontolivingwagesforeverycompanycoveredbytheserequirements.

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|CALLSTOACTION

TABLEES7:Callstoactionforcustomers

CUSTOMERS

Helptheorganisation’scustomersto:

nunderstandandusetheirpurchasingpowerinfavouroforganisationsthatpayalivingwageoraremakingmeasurableprogresstowardspayinglivingwages,relativetothosethatdonot

nunderstandwhytheorganisationiscommittedtopayingalivingwage;and

nusetheirvoiceandinfluenceotheractorsintheeco-systemtoadvanceprogressonalivingwage.

12

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|1.THECASEFORALIVINGWAGE

13

1.Thecaseforalivingwage

1.1Whatisalivingwage?

Whilethereisnoglobalagreementonthedefinitionofalivingwage,severalnotableorganisationshaveprovidedinsightintothisconcept.TheILOforexample,articulatestheconceptofalivingwageas‘thewagelevelthat

isnecessarytoaffordadecentstandardoflivingfor

workersandtheirfamilies,takingintoaccountthecountrycircumstancesandcalculatedfortheworkperformed

duringthenormalhoursofwork’(ILO2024).Similarly,ReggieEcclissato,ChiefSupplyChainandBusiness

OperationsOfficeratUnilever,inanarticlesubmittedforthe

WorldEconomicForum(WEF)annualmeeting,statesthat‘a(chǎn)livingwage,orlivingincome,isthelocalremunerationreceivedforastandardworkweekthatissufficientto

affordadecentstandardoflivingforaworkerandtheir

family.Itshouldbeenoughtoprovideforallbasicneeds,aswellassomediscretionaryincomeandprovision

tocoverforunexpectedevents’(Ecclissato2022).The

GlobalLivingWageCoalitiondescribesalivingwageas

‘theremunerationreceivedforastandardworkweekbyaworkerinaparticularplacesufficienttoaffordadecentstandardoflivingfortheworkerandherorhisfamily.

Elementsofadecentstandardoflivingincludefood,

water,housing,education,healthcare,transportation,

clothing,andotheressentialneedsincludingprovisionforunexpectedevents’(GlobalLivingWageCoalitionnd).

Inoursurvey,whenaskedtoidentifycomponentsofalivingwage,theitemsselectedbyamajorityofrespondents

wereaccommodation,food,healthcare,transportation,

education,energy/heat,childcare,pensioncontributions,

cleanwaterandinsurance(Figure1.1).Thesecorrespondtothedescriptionofalivingwageaboveandindicatethatthesurveyrespondentsareattunedtowhatworkersneedin

ordertohaveadecentstandardofliving.

Thereisthereforeastrongconsensusthatalivingwageshouldprovidetheworkerandtheirfamilywithanincomethatprincipally:

nprovidesadecentstandardoflivingaswellas

discretionaryincomeorsavingsforunexpectedevents

nisbasedonnormalhoursofworkorastandardworkweek(ieexcludesovertime),and

nreflectslocalorregionaldifferencesinthecost-of-livingwithincountriesandisnotdeterminedbyaone-size-

fits-allapproach.

FIGURE1.1:Whichofthefollowingitemsdoyouthinkshouldbeincludedinthecalculationofalivingwage?

(Selectallthatapply)

*egmortgage,rentandequivalents

**egsocialactivitiestoalevelconducivetomentalwell-being

ALIVINGWAGE–CRUCIALFORSUSTAINABILITY|1.THECASEFORALIVINGWAGE

Itisworthhighlightingthattherearenotabledifferencesinthesurveyresultsacrossregionsduetolocalcontextandcircumstances,whichcanbefoundinthe

Surveydata

.

Indeed,thispointstothefactthatcomponentsandcalculationsusedtodeterminealivingwagemust

necessarilybebasedonarecognisedmethodologyandtakeintoaccountlocalcontext.

Thismeans,forexample,thatalivingwagewillbedifferentbetweenLondonandCardiffintheUnitedKingdom,or

betweenKualaLumpurandIpohinMalaysia,andbetween

LagosandAbujainNigeria.Suchdisparitiesevenwithin