English
Over the course of 2015, the FLA used its factory assessment cycle to collect baseline data on worker compensation levels in 124 mainly apparel and footwear factories employing 135,000 workers in 21 countries.  Using the following uniform calculation of compensation, the FLA has plotted factory compensation levels onto a series of “wage ladders” that compare actual compensation paid to local benchmarks like legal minimum wages, poverty thresholds, and living wage estimates.
 
Compensation = Basic Contracted Wage + Cash Benefits + In-kind Benefits
– Mandatory Taxes and Legal Deductions and Taxes
 
These “wage ladders” do not represent endorsement of specific compensation levels as goals, but the report does provide a risk rating of the 21 countries described within.  This rating provides context for companies on where the purchasing power of workers' compensation is the weakest and progress on fair compensation is most urgent.  

Latest Updates

Fair Compensation for Farmworkers: Emerging Good Practices and Challenges

Publication date: 
Monday, February 27, 2017
Report type: 
Fair CompensationReports
The World Bank reports that among the 2.1 billion people worldwide estimated to be living in poverty, "a vast majority ... live in rural areas ... mostly employed in the agriculture sector." To catalyze progress on fair compensation for farmers and workers involved in agricultural supply chains, FLA assessors began collecting information from workers in 2015 on wages earned at the farm-level in seven countries where the FLA conducts agricultural monitoring.

Toward Fair Compensation in Global Supply Chains: Factory Pay Assessments in 21 Countries

Publication date: 
Wednesday, August 3, 2016
Report type: 
Fair CompensationReports
The FLA and its stakeholders (buyers, suppliers, labor rights advocates, and universities) are part of an effort to improve compensation for workers in global supply chains. As a contribution to this effort, the FLA presents here a first-of-its-kind report detailing worker compensation data collected in 2015 by the FLA in 124 mainly apparel and footwear factories in 21 countries.