Less than 5% of large companies commit to pay living wage

Less than 5% of major firms have explicitly committed to pay their staff the living wage, according to a new study. 

The living wage, which differs from the legal minimum wage in the UK and US, is the accepted income needed to secure a normal standard of living. 

It varies depending on location, with most of the UK putting it at £13.45 per hour, while in Washington DC it’s $20.80.  

In most of Europe, no distinction is made between the minimum and living wages. 

The World Benchmarking Alliance (WBA) assessed 2,000 companies and found that, while 95% were silent on the topic, there were areas of leadership: Irish food firm Kerry Group, sportswear giant Puma, and mining company Vale had all disclosed plans for paying direct workers the living wage, for example. 

H&M, Hershey and Unilever were among those to go a step further and establish such plans for their supply chains. 

Last year, investors and NGOs kicked off a campaign to get UK retailers to pay the living wage.

It resulted in proposals at high street stalwarts M&S and Next receiving more than 20% support from shareholders – meaning the pair must formally respond to the request within six months. 

M&S is expected to respond this month, while Next committed recently to outline its approach to pay setting, and publish a final update on its engagement with shareholders in its 2026 annual report. 

Other findings 

WBA’s analysis also found that half the firms had a code of conduct that they applied to their suppliers, but less than 10% assessed human rights risks in their supply chains.  

Of the 200 technology companies evaluated, 77 published principles for artificial intelligence but none provided proof of a “comprehensive human rights impact assessments” on their artificial intelligence activities.