Question 1

Living Wages, Living Income, Living Tariff Worldwide. Update November 2025

Accepted Answer

WageIndicator Foundation Amsterdam, November 2025Authors: Martin Guzi, Nii Ashia Amanquarnor, Daniela Ceccon, Martin Kahanec, Paulien Osse, Fiona Dragstra, Kea Tijdens, Nina Holičková and Mehr KalraCopyright 2025 by author(s). All rights reserved.Picture cover page and pictures throughout the report: Ⓒ Paulien OsseWageIndicator Foundation - www.wageindicator.orgWageIndicator Foundation is a global, non-profit organisation operating in 208 countries. WageIndicator started in 2000 to contribute to a more transparent labour market by publishing easily acces- sible labour market related information online. We collect, analyse, and share data on minimum wages, salaries, living wages, living income, living tariffs, labour laws, collective agreements, and gig and platform work. Our aim is to enhance labour market transparency for workers, employers, academics, trade unions, and policymakers worldwide. Through its platforms, available in 70+ languages, events, newsletters, WageIndicator reaches millions of people yearly.The authors:- Martin Guzi is affiliated with the WageIndicator Foundation, Masaryk University and Central European Labour Studies Institute (CELSI)- Nii Ashia Amanquarnor, Data scientist, WageIndicator Foundation- Daniela Ceccon, Director Data, WageIndicator Foundation- Martin Kahanec, Labour Economist, professor at Central European University in Vienna, and affiliated with University of Economics in Bratislava, Central European Labour Studies Institute (CELSI), the WageIndicator Foundation and Global Labor Organization (GLO)- Paulien Osse, Co-founder WageIndicator Foundation, Global Lead Living Wages- Fiona Dragstra, Director, WageIndicator Foundation- Kea Tijdens, Co-founder WageIndicator Foundation- Mehr Kalra, Data Analyst, WageIndicator FoundationCorresponding author: Martin Guzi, WageIndicator Foundation: office@wageindicator.orgAcknowledgementsMany people contributed to the development of the Cost of Living survey, the Living Wage calculations and to this report, i.e. Iftikhar Ahmad, Batorava Market Research Services, Ahshan Ullah Bahar, Huub Bouma, Hien Dong Thi Thuong, Hala Chamaa, Angelica Flores, Guide Erisha Manhando, Carlos Felipe Zavala Gomez, Rogério Junior, Ali and Emin Huseynzade, Hossam Hussein, Maarten van Klaveren, Mehr Kalra, Jane Masta, Rahna Medhat, Eyoel Mekonnen, Knar Khudoyan, Rupa Korde, Nermin Oruc, Irene Eduardo Palma, Luis Eduardo Palma, Intan Citra Phonskaningtyas, Giulia Prevedello, Mariana Robin, Gashaw Tesfa, Ernest Tiemeh and special thanks to the hundreds of data collectors around the world.Bibliographical informationGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., Dragstra, F., Tijdens, K.G. & Holičková, N. (2025). Living Wages, Living Income, Living Tariff Worldwide. Update November 2025. Amsterdam, WageIndicator Foundation.WageIndicator Foundation Mondriaan Tower 17th floor Amstelplein 36, 1096 BC Amsterdam The NetherlandsEmail office@wageindicator.org

Question 2

Updates to the report based on earlier editions

Accepted Answer

This report and its previous versions build on the original report by Guzi and Kahanec (2019) on measuring Living Wages globally. Since 2019, this report has been updated often, sometimes multiple times a year. Below you find the specific changes that have been made at each update.2022In 2022, this report was updated in February and May:Guzi, M., Amanquarnor, N., Ceccon, D., Kahanec, M., & Tijdens, K. (2022). Living Wages worldwide, update 2022. Amsterdam, WageIndicator Foundation, FebruaryIn February 2022, the following topic was included:● Latest quarterly data.2023 - FebruaryGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., & Tijdens, K.G. (2023) Living Wages Worldwide, update February 2023. Amsterdam, WageIndicator Foundation.In February 2023 the following topics were included:● Living Income and Living Wage Plus.● Insight into the role of data collectors● Latest quarterly data.2023 - NovemberGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., & Tijdens, K.G. (2023). Living Wages and Living Income Worldwide, update November 2023. Amsterdam, WageIndicator Foundation.In November 2023 the following topics were included:● Single income earner as an option in the Family types● Next to Region - Urban/ Rural now also Peri Urban / Peri - Rural● Ethical Principles Implementation Living Wages Guidance● Latest quarterly data, yearly average data, Guidance data2024 - OctoberGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., Dragstra, F., Tijdens, K.G. & Holičková, N. (2024). Living Wages, Living Income, Living Tariff Worldwide.In October 2024 the following topics are included:● Role of ILO in the Living Wage concept● Minimum Wage database linked to GPS codes of relevant parts of cities, regions, countries and optional to company locations.● WageIndicator introduces the ‘Living Tariff’ as a concept● Additionals on top of the basic basket of goods: (child) care, private car cost● Inclusion of ‘Adequate Wages’● Publication of publicly accessible Living Wage estimates in May 2024● Latest quarterly data, yearly average data, Guidance data2025 - NovemberGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., Dragstra, F., Tijdens, K.G., Holičková, N. & Kalra, M. (2025). Living Wages, Living Income, Living Tariff Worldwide. Update November 2025. Amsterdam, WageIndicator Foundation.● Update of the formula used to calculate the number of earners in a family (now including also unemployment rate and part time rate, next to the labour participation rate)● More precision on implementation rules● Latest quarterly data, yearly average data, Guidance data

Question 3

Glossary

Accepted Answer

Topic Description Basket of goods and services A basket of goods and services is a category of items that people must consume to satisfy their basic needs Collective agreements Collective agreements are legally binding contracts between employers and a group of employees, typically represented by a union, that set out terms and conditions of employment such as wages, working hours, worker protections, and benefits. Collective bargaining Collective bargaining is the process in which workers, through their union, negotiate collective agreements. The way employers and employees may negotiate is stipulated in the labour law. This differs per country. In some countries sector wise Collective Agreements are possible, in others only company specific agreements can be negotiated. Some employee groups may be excluded like freelancers, part timers or those who have a high rank in the company. Corporate Sustainability Due Diligence Directive (CSDDD) The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) is an EU directive that requires large companies to identify, prevent, and address human rights and environmental harms in their operations and supply chains. Corporate Sustainability Reporting Directive (CSRD) The EU’s Corporate Sustainability Reporting Directive (CSRD) is an EU Directive that requires large and listed companies in the EU to disclose detailed information on their environmental, social, and governance (ESG) impacts. It aims to increase transparency and help investors, consumers, and stakeholders make informed decisions. Cost-of-living survey The survey used to assess the cost of goods and services consumed by people to meet their basic necessities. The cost-of-living survey from WageIndicator has been in use since 2014; over the years the survey improved. The survey covers close to 200 countries. https://costofliving.wageindicator.org/#/survey CPI Consumer Price Index EU SILC European Union Statistics on Income and Living Conditions FAO The UN Food and Agricultural Organisation FAO Food Balance Sheet The FAO Food Balance Sheet is a statistical framework that presents a comprehensive picture of a country’s food supply and utilization over a specific period, typically a year FTE wages The wages an employee would earn working full-time hours over a period based on their current compensation adjusting part-time earning to a full-time basis for consistent comparison Gig work Gig work refers to short-term, temporary, or project-based jobs performed by employees but mainly by independent contractors or freelancers instead of employees. This may or may not be arranged through digital platforms or apps. ILO International Labour Organisation IMF International Monetary Fund In-kind benefits Non-monetary forms of compensation to employees, like health insurance or meals, raising total compensation beyond monetary wages paid. Inflation Inflation is the general increase in the prices of goods and services across an economy over time, resulting in a decrease in the purchasing power of money Labour Law Labour law is the body of laws and regulations that govern the rights, responsibilities, and conditions of work between employers and employees. In some countries the self-employed are part of the Labour Law. Living Income The Living Income is the remuneration applied to self-employed workers, like farmers and small business owners. It builds on the concept of a Living Wage and must afford these workers and their families a decent standard of living. Unlike a Living Wage, where taxes and social security contributions are paid by employers, a Living Income accounts for taxes and contributions being paid by self-employed workers themselves. Living Tariff The Living Tariff is the remuneration applied to self-employed workers as well as gig workers who are generally paid per hour or task. It builds on the concept of a Living Wage, to reflect the diverse conditions of self-employed workers, also accounting for any work-related costs they incur such as materials (laptop, motorcycle), extra insurances and acquisition time. Living Wage Guidance Data Using the yearly average estimate, WageIndicator calculates a Living Wage Guidance figure (for a country or region) following this procedure to ensure consistency over time: If the current Yearly Average increased by less than 5% above the IMF inflation rate or decreased by less than 3% from previous year’s Guidance, the Living Wage Guidance equals the current Yearly Average. If the current Yearly Average decreases by more than 3% from previous year’s Guidance, the Living Wage Guidance is capped to a maximum of 3% down from previous year’s Guidance. If the current Yearly Average increases by more than 5% above the IMF inflation rate from previous year’s Guidance, the Living Wage Guidance is capped at IMF inflation rate plus 5%. Living Wage Guidance publication Every year, in October, WageIndicator presents a Guidance estimate. The estimates will be published each October in this page https://wageindicator.org/work/living-wages/freely-available-living-wage-data Living Wages According to the ILO, a Living Wage is the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country's circumstances and calculated for the work performed during the normal hours of work. Minimum Wages The Statutory Minimum Wage is the lowest hourly, daily, or monthly wage that an employer is legally obliged to pay an employee. The Statutory Minimum Wage is set by governments, sometimes by employers, trade unions and the government. Some countries have a Minimum Wage structure, they rely on Collective Bargaining, other countries have Minimum Wages for sectors, regions and even occupations. More - https://wageindicator.org/work/minimum-wages Model diet The diet that people must consume to meet their basic nutritional requirements Overtime work Overtime work is work performed in excess of the standard or contractually stipulated hours of work Poverty line The poverty line is the minimum level of income deemed necessary to meet basic needs such as food, shelter, and clothing. WageIndicator’s Region API A piece of software WageIndicator uses to make a database with the names of regions and cities for countries worldwide accessible Single Income Earner Family Living Wage The Living Wage for a family comprising two adults and where the number of children is determined by the country's fertility rate. Only one adult works full-time. Social dialogue Social dialogue is the process of negotiation, consultation, or exchange of information between representatives of governments, employers, and workers on issues of common interest, especially regarding economic, employment, and social policy Standard Family Living Wage The Living Wage for a family comprising two adults and two children, where one adult works full-time and the other works 80% of the legally permissible hours. Standard working week The standard working week refers to the typical number of working hours set by law or practice, usually between 38 and 48 hours per week, beyond which overtime rules may apply Sustainable Development Goals The Sustainable Development Goals (SDGs) are a set of 17 global goals adopted by the United Nations to end poverty, protect the planet, and ensure peace and prosperity for all by 2030. More: https://sdgs.un.org/goals Typical family Living Wage The Living Wage for a family comprising two adults and where the number of children is determined by the country's fertility rate. One adult works full-time, while the working hours of the other are determined by the country's labour force participation and part time rate Upper and Lower Bound Living Wage estimates WageIndicator calculates Living Wages in a range. The lower bound (lowest) Living Wage is calculated using prices at the 25th percentile (or first quartile) of all prices collected while higher bound (highest) uses the 50th percentile (or median) figure. This reflects price variation in a region; the 25th percentile is the value for which 75% of the respondents reported higher prices, while the 50th percentile (median) is the value for which half of the respondents reported higher and the other half lower prices. WFP World Food Programme WHO World Health Organisation Work-related items Items like laptops, motorbikes, delivery equipment, etc. that gig or platform workers may incur costs on for professional reasons. These must be accounted for appropriately in the Living Tariff calculations for any profession.

Question 4

1. Introduction

Accepted Answer

XXX

Question 5

1.1 Summary

Accepted Answer

A growing international consensus recognises the payment of a Living Wage as a fundamental component of decent work and a prerequisite for social and economic sustainability. This principle is rooted in Article 23 of the Universal Declaration of Human Rights, which asserts the right to just remuneration sufficient for a dignified existence, and is reinforced by at least eight of the United Nations Sustainable Development Goals (SDGs). Recent regulatory frameworks and global initiatives—such as the OECD Due Diligence Guidelines and the UN Global Compact’s Forward Faster programme—underscore increasing expectations for companies to ensure wages that meet workers’ basic needs, both within their operations and across supply chains.A major milestone was reached with the ILO Meeting of Experts on Wage Policies in 2024, which produced a formal consensus and principles for wage-setting. These principles emphasise transparent and evidence-based wage determination through tripartite social dialogue and collective bargaining. Definitions of a Living Wage across international organisations, national constitutions, and civil society initiatives reveal broad convergence around the principle of meeting workers’ and their families’ basic needs. Some, such as the Brazilian Constitution, introduce mechanisms for preserving real wage value through periodic adjustments. However, the Living Wage remains a voluntary estimate, rather than a statutory minimum, and is increasingly viewed as a tool to inform wage negotiations and guide incremental progress from minimum to living wages (ILO, 2024).Within this landscape, WageIndicator has developed its Living Wage methodology since 2013. It operates in 208 countries, and collects extensive cost-of-living information through professionalised, mixed-method data collection including web surveys, price monitoring, and local fieldwork. Over the years, WageIndicator has expanded both its methodological sophistication and geographical granularity, most recently providing subnational estimates for India (145 divisions), China (359 prefectures), and the United States (625 commuting zones). Its databases support a wide range of stakeholders, including multinational companies, trade unions, international organisations, NGOs, and academic researchers.WageIndicator’s methodology adheres to ILO principles by ensuring transparency, sensitivity to national contexts, regular updates, and public accessibility. It provides separate estimates for salaried workers (Living Wage), the self-employed (Living Income), and from 2024 the platform and gig economy and other self-employed workers (Living Tariff), which incorporates occupation-specific costs such as equipment, insurance, and waiting time. The 2025 edition of WageIndicator’s Living Wages, Living Income, Living Tariff report consolidates more than a decade of development in Living Wage estimation and expands the framework’s global applicability. Methodological updates in 2025 include a revised formula for estimating the number of household earners, improved cost-of-living survey instruments, and further guidance for applying Living Wage benchmarks.

Question 6

1.2 Introducing Living Wages

Accepted Answer

Article 23 of the United Nations Universal Declaration of Human Rights affirms that every individual who works has the right to just and favourable remuneration, ensuring a dignified existence for themselves and their families. The 17 United Nations Sustainable Development Goals (SDGs) set for 2030 and adopted by all UN member states in 2015 add urgency to Living Wage implementation, since paying a Living Wage furthers at least eight out of the 17 SDGs (Van Tulder & Van Mil, 2022; Kingo, n.d.). In addition to these global goals, recent regulatory frameworks, further highlight the importance of fair wage practices and ensuring wages are adequate to at least meet workers’ basic needs. Living wage commitments are an important piece of corporate Human Rights policies, as also recognised by the OECD Due Diligence Guidelines (Balestra, Hirsch & Vaughan-Whitehead, 2023). Along with UN Global Compact’s Forward Faster, where Living Wage is one of the pillars, there is increasing pressure for businesses from investors, consumers, ESG agencies and external bodies, to commit to paying your employees a Living Wage; some have even been cooperating with their suppliers to achieve Living Wages in their supply chains (Mapp, 2020).A critical step in the global progression of living wage occurred with the International Labour Organization’s (ILO) Meeting of Experts on Wage Policies, including living wages, in February 2024, which reached a consensus in March 2024. The conclusions of this meeting reinforced the importance of transparent wage-setting mechanisms grounded in tripartite dialogue and collective bargaining, ensuring that employers, workers, and governments collaboratively establish fair wages. Since then, the ILO has adopted a set of Principles for Wage-Setting Practices (ILO, 2024). These practices not only secure fair outcomes but also contribute to workplace stability and social equity. Collective bargaining processes play a significant role in reducing wage inequality by establishing negotiated wage floors that prevent wages from falling below essential living standards (Zwysen, 2024). Research suggests that minimum wages supported by social dialogue and bargaining can help wages keep pace with living costs, thus avoiding stagnation and preventing deepening inequality (Zwysen, 2024; Müller 2024).One of the first studies that aimed to understand the income necessary for basic living standards comes from Benjamin Seebohm Rowntree’s 1901 study, ‘Poverty: A Study of Town Life’. Rowntree's study was groundbreaking for its methodology, as he developed a "poverty line" based on the cost of a "basket of goods" that included essential items for a working-class family to sustain health and basic living conditions. His research sought to identify what level of income was required for a family to afford essential needs, which he categorised as food, shelter, clothing, and other basic necessities. Today, this approach has evolved into a framework that helps determine the minimum income necessary for a decent living standard, guiding most living wage calculations. Living wage estimates typically cover essential costs such as food, housing, clothing, childcare, transportation, and healthcare, along with a modest allowance for leisure and emergency expenses. Mankiw (2020) observes that living wage calculations generally exclude significant savings for property ownership, debt repayment, retirement, or education, focusing instead on immediate living costs. Though definitions of a living wage vary in wording, they converge on a shared principle: a wage adequate to meet workers' basic needs without requiring government assistance (Gerber, 2017). The list below shows a selection of definitions of a living wage.● ILO Constitution (1919) and Declarations:The preamble of the ILO Constitution (1919) called for an urgent improvement in conditions of labour including “the provision of an adequate living wage”. This objective was reinforced in the 1944 Declaration of Philadelphia, which supported policies ensuring “a minimum living wage to all employed and in need of such protection”. Although these early statements did not specify criteria for defining a living wage, they described it as a wage “adequate to maintain a reasonable standard of life as understood in the worker’s time and country”. Following the ILO Meeting of Experts on Wage policies, including living wages, in February 2024, the ILO defines the concept of a living wage as “the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country circumstances and calculated for the work performed during the normal hours of work”. This estimate is to be calculated in accordance with the ILO’s principles of estimating the living wage, and to be achieved through the wage-setting process in line with ILO principles on wage setting, such as the need for tripartite dialogue and collective bargaining”. (ILO, 2024) ● Mexican Constitution (1917):The Mexican Constitution of 1917 states that “the general Minimum Wage must be sufficient to satisfy the normal necessities of a head of family in the material, social, and cultural order and to provide for the mandatory education of his children”.● Brazilian Constitution (1988):The Brazilian Constitution (1988) stipulates that the national Minimum Wage must be “capable of satisfying their basic living needs and those of their families with housing, food, education, health, leisure, clothing, hygiene, transportation and social security, with periodical adjustments to maintain its purchasing power”.● Global Living Wage Coalition: The Global Living Wage Coalition defines the Living Wage as “a 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, transport, clothing, and other essential needs, including provision for unexpected events”.● The Asia Floor Wage Alliance The Asia Floor Wage Alliance proposes a wage for garment workers across Asia that would be enough for workers to “be able to provide for themselves and their families’ basic needs – including housing, food, education and healthcare”.● Living Wage Aotearoa New Zealand Living Wage Aotearoa New Zealand defines a Living Wage as “the income necessary to provide workers and their families with the basic necessities of life”. ● Living Wage Foundation UKThe Living Wage Foundation UK calculates their Living Wage rates on the basis of the Minimum Income Standard (MIS) methodology which focuses on understanding the “income that people need to reach a minimum socially acceptable standard of living in the UK today, based on what members of the public think is needed for an acceptable minimum standard of living. It is calculated by specifying baskets of goods and services required by different types of households to meet these needs and to participate in society”. A comparative analysis of these definitions reveals a shared foundational principle: a Living Wage universally encompasses the income required to meet the basic needs of workers and their families, thus enabling a dignified standard of living. Notably, the Brazilian Constitution introduces a distinctive approach by mandating periodic adjustments to maintain the purchasing power of the minimum wage, effectively countering inflation and safeguarding the wage’s real value over time. Importantly, the living wage is not (yet) enshrined in legislation as the minimum wage or as social welfare payment. Instead, it should be seen as one of the elements that may inform wage negotiations and improve minimum wages. Or as the ILO Meeting of Experts report notes “promoting incremental progression from minimum wages to living wages”, (ILO, 2024). WageIndicator welcomes the conceptualisation of living wages and its adjacent principles resulting from the ILO Meeting of Experts in 2024, and follows ILO’s definition and principles in its work on Living Wages: “the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country circumstances and calculated for the work performed during the normal hours of work”. How WageIndicator follows the ILO Principles on Estimating a Living Wage can be found on the WageIndicator website[1]. This 2025 report deals with the constituting elements in WageIndicator’s Cost-of-Living data collection, the calculation of WageIndicator’s Living Wages and Living Income, and ‘Living Tariff’. This report also highlights the newest additions to WageIndicator’s work on Living Wages. For the updates in this report in comparison to previous versions, see Chapter 1.4. [1] https://wageindicator.org/salary/living-wage/faq-living-wage/ilo-principles-and-wageindicator-alignment

FAQs - Living Wage