A Future-Fit Business pays all workers in all regions enough to meet their basic needs and secure essential services for themselves and their families.
What this goal means
Companies should ensure all employees and their families have the means to afford health coverage, to eat a balanced diet and to be free of concerns about meeting basic needs.
A living wage affords a decent standard of living for workers and their families. Living wage estimates vary by region and guidance is offered by government agencies, academics and/or NGOs. In many regions, the living wage is higher than the legal minimum wage or poverty-line wage. Living wage calculations should focus on employee compensation with respect to standard working hours: figures should exclude overtime pay as well as productivity bonuses and allowances, unless they are guaranteed.
Why this goal is needed...
Being in employment does not preclude living in poverty.
In the UK in 2014/15, there were 2.9 million people in work classed as living in poverty.
In real terms, wages in many developed countries have remained stagnant or fallen.
For instance, in the US since 2000, usual weekly wages have fallen 3.7% (in real terms) among workers in the lowest tenth of the earnings distribution, and 3% among the lowest quarter.
A focus on creating a national living wage provides incentives to drive business change.
In the UK in the wake of the government passing a living wage, over 3,500 employers including 1/3 of FTSE 100 companies have become accredited living wage employers, committing to pay above the government stipulated rates.