Living Wage SmartCheck
A living wage covers the basic needs of workers and their families, including food, clothing, shelter, healthcare, education, transport to work, and a little extra for unforeseen circumstances. As governments, industries, and civil society increasingly demand living wages for workers, it’s important to ensure that your company is meeting this standard.
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Are you concerned about the living wages of workers in your supply chain?
That’s where FLOCERT’s Living Wage SmartCheck comes in – we’re a global pioneer and trusted partner in helping companies achieve their living wage goals. We’re committed to helping you ensure that workers in your supply chain receive fair wages that cover their basic needs.
The first step is evaluating whether your company is already paying a wage that allows the workers in your supply chain to meet their basic needs.
We use the IDH Salary Matrix, a standardised tool that helps companies calculate and benchmark the salaries of the workers on plantations in their supply chain, based on job type, location and experience.
Our Living Wage SmartCheck includes onsite audits to verify that the data in the IDH Salary Matrix is complete and correct. If our assessment shows that the workers are not paid a living wage yet, you can use additional interventions to close this gap. Once you have made the investments, we can check that they have reached the workers and provide you with an assessment report.
In our work to secure living wages, we are pleased to have FLOCERT as a partner to assist companies in the verification of living wage gaps.
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The benefits of Living Wage SmartCheck
- Position your business as a sustainability leader and strengthen your brand image.
- Improve your ESG scores.
- Be more confident to meet requirements of existing and upcoming living wage and human rights due diligence.
- Gain transparency on your investments and confidence that they really reach the workers.
- Increase the credibility of your living wage claims through third-party verification.
How our Living Wage SmartCheck works
The IDH Salary Matrix verification process involves a comprehensive assessment of a company’s salary practices, including an analysis of job descriptions and salary data of its plantation workers. The verification is conducted by our local auditors who are trained and experienced in the use of the IDH Salary Matrix.
The auditor will verify that the wages are aligned with the matrix and that any discrepancies are addressed promptly and effectively. The data from the verified IDH Salary Matrix is then used to calculate the living wage gaps and the costs of closing those wage gaps in your supply chain.
Based on the audit findings, you and your business partners can plan and make targeted investments to close wage gaps and ensure that workers in your supply chain are earning enough to meet their basic needs. Lastly, to ensure that additional payments, in-kind benefits or bonuses have reached the intended beneficiaries, FLOCERT will audit the plantation again and verify that these transfers reached the workers successfully.
