The Industry Wage Gap

Wages Industry Score

The Industry We Want wage gap metric, devised in partnership with the WageIndicator Foundation, is 49,5%.

This shows a concerning trend: the average percentage gap between minimum wages and the average living wage estimate across 28 key garment producing countries in our dataset now stands at 49.5%, meaning workers are still receiving just over half the money they need to reach a decent standard of living. This represents a 1% increase from 2023 and a 4.5% increase from 2022, despite heightened awareness and concerted efforts. These are not just abstract numbers; they represent the real struggles of workers and the impact on their lives.

The Data

Our Approach

A living wage is the minimum income necessary for a worker and their family to meet basic needs, including some discretionary income. This should be earned during legal working hour limits. There is a broad consensus that current wages in most garment producing countries are well below any meaningful understanding of a living wage. For The Industry We Want, we accept any interpretation of a living wage that has been endorsed by local Trade Unions and has a transparent methodology.

TIWW provides a wage metric that illustrates the gap between legal minimum wages and living wages in 28 garment sector manufacturing countries, providing a comprehensive overview of wage data. The countries are chosen based on their respective trade volume, market relevance, expertise and region.

The Policy Changes We Want

Policies are being initiated alongside the proposal of mandatory due diligence legislation across the European Union, signalling the need for change across value chains.These laws could shift the industry as it moves us towards accountability.

  • Equal Pay for Equal Work:
    On May 17 2023, this directive aimed at reinforcing the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms, established minimum rules applicable to both public and private sector employers and all workers with an employment contract or relationship in the EU Member States.

    While this regulation strives to ensure transparency in payment and equalise pay scales, there remains a crucial consideration. The definition of 'pay' encompasses only the basic or minimum wage or salary plus any benefits received directly or indirectly by the worker. Recognising tPolicies are being initiated alongside the proposal of mandatory due diligence legislation across the European Union, signalling the need for change across value chains. New policy initiatives are being spearheaded by a number of CSOs forming coalitions, these developments could shift the industry as it moves us toward accountability.hat a minimum wage often falls short of providing a decent standard of living, we support legislation that mandates employers to pay at least a living wage, rather than merely a minimum wage.

Spotlight Initiatives

We believe collaboration is key in driving systemic change. As such, we keep close ties with other initiatives seeking to drive improvements in wages such as the European Citizens’ Initiative (ECI) Good Clothes, Fair Pay.

Whereas their one-year long campaign as an ECI may have come to an end, the initiative marks only the beginning of the industry’s continued effort to secure living wages for the people who make our clothes.

Our Partner

WageIndicator seeks to achieve greater labour market transparency for the benefit of all employers, employees, and workers worldwide. It does so by sharing and comparing information on minimum wages, living wages, actual wages, labour law and career. WageIndicator works in 200 countries with websites in national languages.