Living Wage

Living Wage

“Conduct studies in three producing countries in East Africa (Ethiopia, Kenya and Tanzania) to gain insight in current wage levels, wage setting processes and living wage gaps. In a second step, invite public and private stakeholders to exchange and collaborate on a sector approach towards a living wage.”

Kristina Ullrich | Advocacy Officer at HIVOS

KEY ACHIEVEMENTS
  • estimate of a living wage for rural Mount Kenya (June 2015) is KSh12,969 (US$135) per month Infographic summary – Full report
  • estimate of a living wage for the Lake Naivasha area is KSh22,104 (US$219) per month Full report
  • estimate of a monthly living wage in Ethiopia is 3,176 Birr (US$154) per worker with a family of 1;65 full-time workers Infographic summary – Full report
  • closing the living wage gap requires a significant wage increase. It is not likely that this will be legally required in the near future, thus this would require a voluntary living wage payment system
  • paying the costs of closing the living wage gap seems to be relatively small for retailers and supermarkets compared to the reputational risk and the branding opportunity a living wage rose provides
  • on average Western consumers are willing to pay a premium of 21.5% on the conventional price for ethical products Full Report (True Price)
  • the project resulted in the creation of the Living Wage Lab; a Dutch multistakeholder platform for the agri-food sector in which traders, retail, growers, government etc participate to exchange and learn about living wage best-practices and explore solutions together
Partner
HIVOS in partnership with Fair Flowers Fair Plants and FairTrade
Key Topic
Working Conditions
Region
East Africa
Status
Project completed (2015-2016)
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