Chapter 04 · People & supply chainsHuman Rights & Social Sustainability
Adequate wage
Definition
An adequate wage is remuneration considered sufficient under a specified legal, collective-bargaining or policy framework, taking account of the applicable wage-setting criteria; it should not be assumed to equal a living-wage estimate unless the methods and outcomes align.
References
This reference provides supporting context for how “Adequate wage” is defined and used.
Overview
How it is used
The term appears in workplace policy, sourcing, human-rights due diligence, community engagement and supply-chain management, where employers, buyers, suppliers, governments, workers and affected communities use it to classify, assess or communicate pay assessed as sufficient under the applicable legal, collective-bargaining or normative framework, which may not be identical to a living wage.
Its correct use depends on the affected population, supply-chain boundary, local context, timeframe and evidence from rights-holders.
Why it matters
“Adequate wage” matters because it can affect whose rights, needs, risks and experiences are recognised in decisions. If its boundary or evidence is unclear, different users may reach incompatible conclusions while appearing to use the same language.