Topic > The Benefits of a Living Wage - 1303

They calculated a living wage formula for Asia based on the assumption that one worker supports himself, as well as two adult dependents or one adult dependent and two to four children, who 50% of their salary goes towards food, 40% towards clothing, housing, travel expenses, children's education and healthcare costs and 10% towards discretionary income (i.e. entertainment, savings or retirement). The Asian minimum wage is calculated in PPP dollars (dollar purchasing power parity), a hypothetical currency for world banks based on people's consumption of goods and services. This allows comparison of living standards between countries, regardless of currency. The AFW also carries out food basket research, which allows it to calculate a fair and relatively accurate living wage. To achieve a living wage, companies must include the living wage principle in their corporate policy, respect freedom of association and collaborate with trade unions and workers' rights groups. Companies must publicly commit to a living wage level, making it much harder for them to back out. It is important that companies present a roadmap with a timescale for paying a living wage and run programs involving suppliers, unions and employment support groups, as well as collaborating with stakeholders and acting transparently. There are several associations and