Terms of Reference: Living Wage Analytical Tool

IDH is working to secure living wages through the Roadmap on Living Wages. This Roadmap works to strengthen international alignment and to build tangible solutions regarding closing living wage gaps. Earning a living wage means workers receive sufficient wages to afford a decent standard of living for the worker and their family. A Living Wage is paid when a worker receives remuneration that is sufficient to afford a decent standard of living for the worker and her or his family in their location and time. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs including provision for unexpected events.

To act, companies need:

  1. Reliable living wage benchmarks for every region they source from;
  2. Understanding of workers’ current earnings and how these compare to living wage benchmarks;
  3. Uniformity in how living wage gaps are verified;
  4. Practical solutions to remove barriers and close living wage gaps;
  5. Access to best practices and learning on how the gaps can be reduced over time.

IDH supports companies with all these steps through the Roadmap and the developed tools, such as the living wage benchmark finder tool, the Salary Matrix and the guidelines for verifying living wage gaps. IDH is now aiming to create a new tool to assist companies specifically in steps 4 and 5 mentioned above.


The details of Consultancy Pool can be found in the TOR below. The deadline for the submission of proposals is Monday, July 19th, 2021.  New deadline is Wednesday, July 21st, 2021.

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