A living wage is a fair salary or compensation that allows workers and their families to live a decent life and covers the cost of necessities such as food, water, housing, education, health care, transport, clothing, and other essentials including provision for unexpected events. The Asia Floor Wage Alliance calculate living wages based on factors including the number of family members being supported, the nutritional needs of a worker and their dependents, and their other basic needs including housing and education.
There is typically a big gap between a minimum wage and a living wage. This is because national minimum wages are often kept at low levels in order to ensure the country remains competitive and costs are kept low so that global brands choose to source there. Brands need to commit to paying a living wage in order to ensure the workers who make their profits possible can live in dignity.
