As part of our approach on closing the living wage gap, IDH is recommending trustworthy ways of verifying calculations of living wage gaps.

Living wage projects, led by diverse groups of partners and stakeholders, are taking place all over the world. As focus on this important topic has continued to grow, so too has the need for uniformity around how living wage gaps are calculated. Consistent and aligned living wage gap analysis is crucial to the effectiveness and credibility of strategies to close gaps and achieve decent standards of living for workers.

For buyers or traders that have supply chain partners all around the globe, alignment around both the living wage concept and how living wage gaps are measured is fundamental to building trust and the capacity to scale up. For producers and manufacturers that are asked to calculate the living wage gap at their production level, uniformity will ensure clarity and reduce inefficiencies.

To support this need, IDH has developed guidelines for verifying living wage gaps through third-party auditing and the corresponding base report, which serves as the physical evidence for third-party verification of living wage gaps. These guidelines have been developed to support third-party schemes and their auditors interested in verifying living wage gaps.

For companies interested in independent verification, IDH recommends working with dully trained auditing schemes that can help verify calculations on remuneration and living wage gaps through the appropriate use of the Salary Matrix and that have adhered to the use of these guidelines.

Coming soon: the list of recommended organizations that have embraced the implementation of IDH’s guidelines for verifying living wage gaps [to be posted in 2021].

Independent verification carried out by IDH recommended auditing organizations can support dialogue between producers, workers’ organizations and buyers for finding solutions to address potential differences between current remuneration and living wages.

Are you an organization interested in the implementation of these guidelines?


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  • IDH Roadmap on Living Wages
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