With Michelin's announcements in April, the living wage has come under the spotlight. The issue is about to become a matter of compliance, with the entry into force of the Corporate Sustainability Reporting Directive (CSRD) starting from 2025, which lists pay among the data to be provided annually by companies, concerning both staff and the value chain. Although a number of companies have adopted the living wage, it is still far from being widespread, due to the lack of a common definition and the effort required to put it in place.
Key points
- The living wage is increasingly being introduced at large companies, as a result of commitments, a desire to make the company more attractive, new regulations (albeit indirect) and pressure from investors and NGOs.
- However, the lack of a common methodology and the complexity of the implementation process are still holding back widespread adoption.
- This measure is starting to be extended to suppliers, notably through international social dialogu
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Article authors
Antoine Piel
Section Head at Mind HR