Insights on Living Wage from the Research of IPSP -27-Oct-Barriers & Enablers of Living Wage, Matteo Squire

How can we better understand the dynamics of living wages worldwide and their impact on our economies and societies? The International Panel on Social Progress (IPSP), in collaboration with the OECD WISE Centre, is addressing this question through new research on how living wages affect poverty, income distribution, productivity, and informality. This research also explores the enablers and barriers to implementing living wages, examining how public and corporate policies can align to raise wages and support informal workers where economic conditions allow. This webinar presented preliminary research findings and discussing how they can inform policy initiatives across OECD countries.

1. Private Sector
Perspective
Challenges and enablers to advance
living wages in global supply chains
October 2025

2. Why Companies Address Living
Wage?
2
The Moral Imperative
Business models relying on poverty wages incompatible with respecting human rights.
The Business Case
It has clear commercial benefits.

The Economic Case
Could boost global GDP by an additional US$ 4.56 trillion every year.
Mounting External Pressure & Major Unlocks
Government regulations e.g. EU CSDDD. ILO global agreement + government engagement (e.g. India, CDI, Vietnam).
Investors demanding action e.g. Platform Living Wage Financials. ShareAction’s Good Work Coalition.
Public Data. Unilever, l’Oreal and others fund WageIndicator.
Public Commitments. UNGC Forward Faster – 700+ companies committed
Increases worker
productivity and
reduces turnover
Creates more resilient
value chains
Grows consumer
markets

3. Unilever’s LW Journey
SECTION ▸ CHART
3
2014 2020 2021 PRESENT
Framework for Fair
Compensation for
own employees
LW Achieved
Accredited global LW
employer
+
Commitment to value
chain
Supplier onboarding
and movement
building

4. Successes & Challenges
SECTION ▸ CHART
4
NEED FOR LEGISLATION TO LEVEL PLAYING FIELD
LIMITED AWARENESS AND UNDERSTANDING OF HOW TO GET STARTED BY SUPPLIERS
LIMITED NUMBER OF COMPANIES DRIVING LW IN THEIR SUPPLY CHAINS
Successes: Dedicated Collaborative Manufacturing & Contingent Workforce
Key Challenges:

5. MW – LW Gaps
SECTION ▸ CHART
5

6. Barriers and Enablers – A summary
SECTION ▸ TITLE ONLY
6
Barriers
1.Regulatory
2.Awareness & Understanding
3.Economic
4.Operational
Enablers
1.Level playing field through policy
2.Collective bargaining
3.Clear standards, guidance and data for
implementation
4.Strengthened business case
5.Technological advancements
6.Shifting consumer expectations

7. Looking Ahead
•World Social Summit
•ILO Coalition for Social Justice &
Government Support
•Movement Building with UNGC,
IDH, BCTI, etc.