Moving from Minimum Wage to Living Wage in India?

Concept note

In the past few years, Living Wages have been increasingly on the agenda. Businesses are putting it on their sustainability agenda, and voluntary and mandatory guidelines and legislation are being put out to advance Living Wages globally. In recent European legislation, such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), “Living Wages'' are explicitly mentioned in reporting guidelines, and the UN Global Compact has included Living Wages as one of the key pillars in their Forward Faster movement. Coupled with the recent advancements during the ILO's Tripartite Expert Meeting on Wages and Living Wages in March 2024, and WageIndicator publishing its Living Wage estimates for 165 countries since 1 May 2024, it’s clear that Living Wages are to be taken seriously. 

In India, ensuring compliance with minimum wage laws is challenging due to the extensive informal economy, with 62 million workers currently earning below the minimum wage. Inflation further complicates this issue. As India aspires to become the third largest economy by 2030, it is essential to secure adequate wages for all workers, with the private sector playing a pivotal role in adopting Living Wages within their supply chains.

The UN Global Compact's Forward Faster initiative, launched last September, calls on businesses to set ambitious targets across five critical areas to advance progress on all 17 SDGs. Companies that commit to living wage targets agree to implement living wages within their operations and collaborate with supply chain partners to ensure fair wages, incorporating this commitment into their business strategies. 

Since then, significant progress has been made in bringing the Living Wage discussion to India. UN Global Compact Network India’s Regional Convention in December 2023 and National Convention in February 2024 initiated crucial private sector discussions on living wages in achieving the Sustainable Development Goals (SDGs) by 2030. With the momentum from WageIndicator's Pune conference in March and the government's plan to transition from Minimum Wages to Living Wages by 2025, it's time to advance this initiative.

WageIndicator, UN Global Compact Network India, and FLAME University are united in our commitment to drive transformative change for Indian workers, civil society and businesses. We believe that collaboration and dialogue between key stakeholders is key to pushing the Living Wage agenda forward. By bringing together leading Indian scholars, wage and labour law experts, and pioneering companies, we aim to create a powerful coalition that will aim to address the impact of Living Wages on India’s minimum wage structure. This session will facilitate a space for learning and dialogue and explore legal implications, cost of living indicators, and practical next steps, providing a platform for collective action.

Organised by

• WageIndicator Foundation
• FLAME University, Pune
• UN Global Compact, India

Intended outcome

• Develop a strategic roadmap in collaboration with Indian scholars, ILO India, and UN Global Compact Network India to determine actionable next steps for advancing the Living Wage agenda in India. 
• Foster collaboration among businesses, academics, and other key stakeholders to generate insights and develop actionable recommendations aimed at improving wage standards.
• Provide strategies to enhance workers' well-being and economic security, ensuring fair compensation that aligns with the cost of living.
• Secure bold commitments from the private sector to drive momentum and influence policymakers to adopt comprehensive living wage policies.
• Promote sustainable economic development by integrating living wage principles into business practices and policy frameworks.
• Strengthen advocacy efforts to encourage the adoption of living wage policies at the national level, reinforcing the commitment to achieving the SDGs by 2030.

This event is by invite-only. Details regarding the agenda and speakers will be added soon.