Tenants shall provide a living wage

The Global Living Wage Coalition (GLWC) is recognized as a global leader in creating high quality, detailed, and transparent estimates of living wage that are both normative and specific. They utilize the Anker methodology as the basis for consistent and objective information about living wages and wage gaps. Since the GLWC doesn’t produce living wages in all countries and regions, it is acceptable to use other credible third-party information provided it is current and follows guidance in ‘Minimum requirements in a living wage calculation’ in the next section. The GLWC methodology provides living wages for a family. Other third-party data should specify whether it is for a single individual or a family. International best practice is to use the family wage.

It is not likely that a regional living wage would not be available to use as a guideline for meeting the requirements. The Additional Resources below serve to determine living wage but are not the only sources available. Should other sources be used, verification shall include the method used to determine living wage.

Should no data be available after an exhaustive search, the following criteria can be used to manually calculate a living wage. This requirement is based on methodology from the GLWC to calculate a living wage. The minimum expenses to be included in addressing basic needs are:

• A low cost, nutritious diet meeting WHO recommendations for calories, macro- and micronutrients, consistent with local food preferences.
• Potable water for consumption and sanitary / hygienic purposes.
• Clothing costs, as regionally appropriate.
• Transportation needs, as regionally appropriate.
• Costs of any other regionally relevant basic needs identified, if applicable.
• Education fees for the workers’ children.
• Decent housing, as defined by UN-HABITAT and applicable regional standards for decent housing.
• Healthcare needs.
• A provision for unexpected events.

In addition to covering the above expense types, the calculation should include consideration of the following contexts:

• A clear statement of the area it is meant to apply to.
• The time period that it is calculated for.
• If the living wage is being calculated for anything other than the reporting period, an explanation must be provided as to why the figure being used is appropriate.

In accordance with the Global Living Wage Coalition methodology, a company should exclude the following:

• Overtime pay, because a living wage must be earned in standard working hours.
• Productivity bonuses and allowances unless they are guaranteed.

Employees’ wages shall be calculated using net or "take-home" pay, rather than gross pay for comparison to the living wage for each region. If employees receive benefits that assist them in meeting basic needs, such as health insurance, those amounts should be considered supplements toward the net pay amount.

Additional Resources

• The Global Living Wage Coalition – 44 countries living wage data using the Anker Method along with Living Income Reference Values
• The Living Wage Foundation – UK and London-specific living wage estimates
• Living Wage Calculator – living wage data for the United States developed and maintained by MIT
• Living Wage for US - living wage data for the United States using a hybrid Anker Method