Working poverty is a reality worldwide. For many workers, a job does not provide a way out of poverty for them and their families. The cost-of-living crisis has thrown into stark relief the vulnerability of low-paid workers and made clear the consequences of economic fragility on human capital development, making the provision of living wages all the more urgent. While a great deal of progress has been made to ensure living wages for all workers, more needs to be done to ensure we leave no one behind.

The UN Global Compact encourages companies to promote and provide a living wage as an essential aspect of decent work to ensure all workers, families and communities can live in dignity.

There is now a tripartite (between Governments, Employers’ and Workers’ organizations) agreement on the concept of a living wage: “A living wage is the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country circumstances and calculated for the work performed during normal hours. It should be calculated in accordance with the International Labour Organization's (ILO) principles of estimating the living wage, and to be achieved through the wage-setting process in line with ILO principles on wage setting."

Governments have an important role to play in supporting wage-fixing mechanisms at a sectoral level. More than 170 countries have one or more minimum wages set through legislation or binding collective agreements. In many countries, however, companies must go beyond existing wage legislation as minimum wages do not always allow for a decent living. By going beyond legal compliance, businesses can ensure that all their employees have the income to support their needs and those of their dependents, raising standards of health and well-being.

As part of the corporate responsibility to protect and respect human rights outlined in the