There has been a 1% increase in the gap between minimum wages and living wages in the last one year, according to the multistakeholder initiative The Industry We Want (TIWW).
- The 2024 wage score of 49.5% reveals a 1% increase in the gap between minimum wages and living wages since 2023, according to TIWW’s Industry Dashboard, the latest scores of which were published Tuesday.
THE SIGNIFICANCE: The gap between minimum wages and living wages shows that workers are still receiving just over half the money they need to reach a decent standard of living.
- The gaps indicates that, despite industry efforts, the average difference between legal minimum wages and living wages has slightly widened.
- The wage metric illustrates the disparity between legal minimum wages and living wages in 28 garment sector manufacturing countries, providing a comprehensive overview of wage data. The countries are chosen based on their respective trade volume, market relevance, expertise and region.
- The most significant wage gap increase since last year’s score has been reported in Colombia, Honduras and Turkey; the countries with the widest gaps are China, Egypt, India and Indonesia.
THE DASHBOARD: The dashboard features the third cycle of industry-wide scores on three critical interlinked pillars of change: wages, purchasing practices, and greenhouse gas (GHG) emissions.
- Launched in 2022, the Industry Dashboard serves as an annual barometer of industry progress, encouraging accountability and galvanising action across the sector.
- TIWW is a multi-stakeholder initiative facilitated by Fair Wear, the Ethical Trading Initiative and the Sustainable Apparel Coalition. It is committed to advancing social, commercial and environmental practices in the garment and footwear sector.
- The wage metric has been developed in collaboration with the WageIndicator Foundation.
THE GAP: A living wage is the minimum income necessary for a worker and their family to meet basic needs, including some discretionary income. This should be earned during legal working hour limits.
- There is a broad consensus that current wages in most garment producing countries are well below any meaningful understanding of a living wage.
- TIWW accepts any interpretation of a living wage that has been endorsed by local Trade Unions and has a transparent methodology.
- TIWW provides a wage metric that illustrates the gap between legal minimum wages and living wages in 28 garment sector manufacturing countries, providing a comprehensive overview of wage data.
