EU EFRAG Standards framing CSRD requirements are introducing the concept of “adequate wage”, expecting eligible companies to report on this in their workforce (ESRS S1) and their value chain (ESRS S2). Here are 5 principles to bear in mind while calculating adequate wage.
The concept of an adequate wage is closely related to the notion of a living wage, which is a wage that enables workers to meet their basic needs and also provides them with some discretionary income for other expenses. A living wage is often higher than the legal minimum wage and reflects the actual cost of living in a particular location.The determination of an adequate or living wage can be complex and depends on various factors, including local labor market conditions, the cost of living, and the type of work being performed. It is important for employers to ensure that their employees receive a wage that is fair and equitable, and that reflects the value of their work.
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