Dutch Association of Investors for Sustainable Development

Living Wage

A living wage is a wage that meets the (basic) needs of an employee and his / her family. The basic needs are defined as not only the biological needs, such as water, food and shelter, but also other essential needs, such as education, clothing and medical care. A living wage ensures a dignified existence and inclusive society.

A living wage can prevent poverty and gives a family a better chance for the future, because children can go to school instead of having to work. In addition, payment of a living wage may motivate employees more strongly and offer opportunities for employee retention, quality and reputation. VBDO expects companies to check in their own operations whether a living wage is paid and make corrections where necessary. In addition, companies are asked to actively pursue this in the chain. This theme contributes to Sustainable Development Goals: 28 en 10.