Criteria | Guidance | Evidence & Scoring | Importance & Applicability |
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Criteria 6.3: Criteria 6.3: Workers’ rights are respected 6.3.2 Formal commitment and targets are in place to advance towards a living wage for workers. |
The UEBT preferred reference for living wage is the Global Living Wage Coalition (GLWC) and the Anker methodology. The total remuneration (wages as cash and in-kind benefits) should be assessed against a living wage benchmark in accordance with the GLWC.
As defined by the GLWC, a living wage is the remuneration received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs, including provision for unexpected events.
In-kind benefits can be valued and considered to reach a living wage benchmark or reference values. In-kind benefits are defined by the GLWC as non-monetary benefits such as food, transport, and housing that reduce the amount of cash income that workers need for a decent standard of living. A fair and reasonable value for in-kind benefits provided needs to be taken into consideration. What is considered valid are, for example: highly subsidised or donated food services, transport service from home to the workplace and vice versa, school supplies and uniforms, private medical services, and family housing, valued at a local rate opportunity. In-kind benefits cannot represent more than 30% of the total remuneration, as too great a reliance on non-monetary benefits hinders empowerment and free choice (reference: GLWC).
'Formal commitment' in this context will depend on the structure of each organisation and is not restricted to a documented (written) commitment. This can also consider organised meetings to discuss strategies towards living wages, internal policies dealing with this topic, group discussions for a sector-wide approach regarding decent living conditions, etc.
The following UEBT tools are available to help assess this criterion (contact us at certification@uebt.org for more information):
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INTERVIEWS DOCUMENTATION 0 - There is no commitment and/or targets in place to advance towards a living wage for workers and nothing done yet to understand the applicable living wage for the workers Score 2 to be reached by third year |
Importance Critical stepwise Applicability |
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