Why an Asia Floor Wage?

published 25-04-2013 16:10, last modified 17-10-2013 12:03
Most of the world's garments are made in Asia, and yet the Asian workers who make them are paid the least.

The problem 

The garment industry in Asia provides millions of job, but the pay is far from enough for the workers to be able to live on.  

All garment workers in Asia need a  wage increase to be able to provide for themselves and their families basic needs - including housing, food, education and healthcare.  However often when workers struggle to improve their wage and conditions in one country, companies relocate to another country where wages and conditions are lower. 

Workers, are therefore, afraid to fight  for better wages because they might lose their jobs.

Did you know?
For an average item of clothing only between 0.5-3% of the cost goes to the worker who made it.  This means that on an €8 t-shirt, the most a worker will get paid is 24 cents.

The solution - An Asia Floor Wage

The Asia Floor Wage proposes a wage for garment workers across Asia that would be enough for workers to live on.

Based on some common factors including the number of family members to be supported, the basic nutritional needs of a  worker and their dependents and their other basic needs including healthcare and education, the Asia Floor Wage is able to calculate the minimum amount needed to constitute a living wage. 

The Asia Floor Wage is calculated in PPP$ -  Purchasing Power Parity $, which are an imaginary currency built on the consumption of goods and services by people, this currency allows us to compare the standard of living between countries, regardless of the national currency.   

Currently the Asia Floor Wage is calculated to be PPP$ 725.

The Asia Floor Wage is different in each country's national currency, but has the power to buy the same set of good and services in all countries. 

 For a breakdown of what the Asia Floor Wage is in local currency click here.