Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Garment Worker Pay at 45% Gap from Living Wage, Report Finds

Workers in a Vietnamese garment factory. Shutterstock
Workers in a Vietnamese garment factory. Shutterstock

Workers in key garment- and footwear-producing countries are, on average, receiving just 55 percent of the pay they need to achieve a decent standard of living, according to data published Monday by The Industry We Want, a coalition of industry stakeholders calling for better working conditions and environmental sustainability in fashion.

The study compared legal minimum wages in 13 countries against benchmarks for reasonable living wages established by organisations including WageIndicator Foundation, Global Living Wage Coalition and the Clean Clothes Campaign. Indonesia was found to have the largest wage gap of 71 percent, followed by China at 68 percent, while Honduras and Turkey were the lowest, at 3 percent and 5 percent respectively. Over half of the countries, including India, Vietnam, Cambodia and China, had a gap of over 50 percent, meaning minimum wages in the country amounted to less than half of what fair pay organisations assess to be a living wage.

The findings come at a time of prolonged uncertainty for workers in the global garment industry, where issues wage theft and underpayment over the course of the pandemic are currently compounded by inflationary pressures on the cost of living. A July 2021 report by the Clean Clothes Campaign estimated that workers were owed $11.85 billion in unpaid wages and severance between March 2020 and March 2021.

Learn more:

ADVERTISEMENT

Brands Face New Pressure on Labour Rights

Activists and regulators are dialling up scrutiny on brands after fragile protections for garment workers collapsed under pandemic stress.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Sustainability
How fashion can do better for people and the planet.

Fashion’s Virgin Plastic Problem

The industry needs to ditch its reliance on fossil-fuel-based materials like polyester in order to meet climate targets, according to a new report from Textile Exchange.


Are H&M and Zara Harming Forests in Brazil?

Cotton linked to environmental and human rights abuses in Brazil is leaking into the supply chains of major fashion brands, a new investigation has found, prompting Zara-owner Inditex to send a scathing rebuke to the industry’s biggest sustainable cotton certifier.


Is April Still the Greenwashiest Month?

Over the last few years, the run-up to Earth Day has become a marketing frenzy. But a crackdown on greenwashing may be changing the way brands approach their communications strategies.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024