Indicator 3.8.1

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Indicator 3.8.1

by Contact on 8 October 2026

Requirement

The UoC shall set wages, before overtime and bonuses, at or above the legal minimum wage. An exception applies where a minimum wage has not been established by applicable law, in which case the UoC shall calculate wages in consultation with employees or their representative organisations. **

How Do I Interpret This Requirement?

  • The following countries do not have a minimum wage established by law:

    • Denmark

    • Finland

    • Italy

    • Norway

    • Sweden

    • Iceland

    • Singapore

    • La Reunion

    • Tonga

    • Tuvalu

    • North Korea

    • South Sudan

    • Brunei

    • Zimbabwe

    • Djibouti

    • Somalia

  • In these countries wages should be negotiated:

    • through collective bargaining or

    • other consultation with employees and their representative worker organisations.

    • Further guidance on collective bargaining and worker organisations can be found in Criterion 3.6.

    • In-kind benefits provided by the UoC should not be used as a way to pay less than the legal minimum wage to any employee.

  • In-kind benefits can include:

    • housing

    • subsidised rations, food, meals

    • transport

    • utilities such as water and electricity, etc.

    • Some of these in-kind benefits can be included in the living wage calculation, as described in Appendix 11: Methodology for Wage Measurement.

Evidence of Implementation

  • employee contracts

  • payslips

  • working hours records

  • payment transaction records

  • any collective bargaining agreements that are in place.

Auditors Should Confirm

  • national legal requirements on minimum wage;

  • relevant collective bargaining agreements on wages in the sector (recommended prior to audit visit);

  • that no in-kind benefits have been paid in place of the legal minimum wage.

Useful Resources