Sustainability Language

Human Rights & Social Sustainability

Adequate wage

An adequate wage is pay assessed as sufficient under the applicable legal, collective-bargaining or normative framework, which may not be identical to a living wage.

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Definition

An adequate wage is remuneration considered sufficient under a specified legal, collective-bargaining or policy framework, taking account of the applicable wage-setting criteria; it should not be assumed to equal a living-wage estimate unless the methods and outcomes align.

Overview

What it means in practice

Assessment begins by identifying the wage, workforce, jurisdiction, legal or collectively agreed reference and any required wage-setting principles. A separate living-wage benchmark may reveal whether nominal compliance delivers an adequate standard of living.

Why it matters

Different wage concepts answer different questions. Clear terminology prevents a statutory minimum, a collectively agreed wage and a needs-based living wage from being presented as though they were equivalent.

Boundary note

The meaning varies by legal and reporting framework. Users should state whether the test concerns compliance, wage-setting process, purchasing power, household needs or another measure of adequacy.

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