Global Employers Embracing Living Wage, with 24% Already On Board
According to a report by PwC, 24% of employers worldwide are now paying a living wage, while 54% of others plan to do so within the next five years.
What is a Living Wage?
A living wage is defined as a salary that provides a decent standard of living for a worker and their family, as per the Global Living Wage Coalition. It should be sufficient to cover basic needs such as food and water, and allow people to save for unexpected events.
History of the Living Wage
The concept of a living wage was first promoted after World War I and World War II. In 2016, the UK introduced a national living wage law, establishing a mandatory minimum wage for all workers over 25 years old. This has since been lowered to 23 years old. New Zealand has also introduced a living wage, although it is currently a voluntary initiative for employers.
Living Wage vs. Minimum Wage
It's essential to distinguish between a living wage and a minimum wage. Over 170 countries have a legal minimum wage, but in some places, this is not enough to prevent workers from falling into poverty.
Benefits of Paying a Living Wage
According to Unilever, a British multinational consumer goods company, the benefits of paying a living wage are clear, even for business owners. Consumers seek out brands that take the lead on ethical issues and vote with their wallets if they don't meet expectations. Paying a living wage can also increase employee engagement and productivity, reducing staff turnover and training costs. Lifting workers out of poverty also grows consumer markets.
Tunisia's Minimum Wage
In Tunisia, the minimum wage for non-agricultural workers varies depending on the number of hours worked: 390,692 TND per month for a 40-hour system and 459,264 TND per month for a 48-hour system. For agricultural workers, the wage is set at 17,664 TND per day. According to an estimate by the Global Living Wage Coalition in 2020, the wage considered vital in rural Tunisia was 695 TND per month. These figures highlight the persistent challenges related to wage levels in the country.
