Living Income and Living Wage: the importance
Living Income/Living Wage enable workers, farmers, and others to afford a decent standard of living. These concepts are being increasingly recognized as an essential human right, and working towards living incomes and wages enable governments, companies, NGOs, and other stakeholders to achieve several developmental goals.
A living income and wage is the net annual income required for a household in a particular place to afford a decent standard of living for all members of that household.
A living income benchmark is an estimate of the cost of a basic and decent standard of living for a household. The benchmark is always time- and place-specific, depending on the cost of living and household reference size of a region or sector in a specific country, at a specific point in time.
What is NewForesight offering?
We have extensive experience working in sustainable market transformation and agricultural commodities. We have a long track record of focusing on living income and wage and offer a full suite of solutions:
1. Benchmark development:
We have established an efficient methodology for the development of Living Income & Living Wage Benchmarks, closely following the Anker principles and relying on proprietary semi-automated tools and methods for a resource-efficient, yet accurate estimation. See our Reports and Benchmarks page for all public benchmarks.
2. Gap assessments:
We conduct gap assessments between the benchmark and the prevailing incomes or wages of a certain segment of the population (e.g., workers, farmers, or producers). This involves statistical (and segmentation) analysis within the target population to understand and define current income and wage levels. It helps organizations to assess the gap that need to be filled for enabling better living conditions for its direct beneficiaries.
3. Developing strategies to close the Living Income/Living Wage gap:
We develop strategies for organizations to close the existing gap for its beneficiaries. It involves understanding the effective measures, services, or interventions based on the context and severity of the gap. We design region-specific, commodity-specific and stakeholder-specific strategies to support organizations.
We support organizations with the development of tools and frameworks that help evaluate the impact of strategies they have undertaken. It involves developing or revising their Theory of Change, Key Performance Indicators and performance monitoring frameworks that help them evaluate and report impact.
We conduct on-ground impact evaluations using our developed tools and frameworks to better support organizations in mapping and representing the impact at the last mile. We also enable feedback from the ground to strengthen tools and frameworks developed by us/organizations for impact evaluations.
Did you know?
Our benchmarking methodology is recognized through IDH’s benchmarking recognition process, and it can be used to meet your requirements in the B Corp standard
How to approach the living income & wage questions in your supply chain or sector
Starting your living income & wage journey can be overwhelming. We have created a stepwise process to help you understand what to do when. We would be happy to support you, or brainstorm on the relevant options on a Living Income / Living Wage strategies for your situation.
Contact the Lead of our Living Income & Wage team, Daniel Viviers-Rasmussen and it will be our pleasure to offer you more information or set up a call.