The Living Income
Community of Practice
Tools on Living Income and wages
To contribute to fairer pricing policies, the Initiative for Sustainable Agricultural Supply Chains (INA) developed the tools to help users along the value chain identify the size of the living income gap, calculate the price to close the gap, and determine the additional wage costs to achieve a living wage
1. GIZ Living Income Reference Price Estimator
The German Act on Corporate Due Diligence in Supply Chains identifies responsible procurement and buying practices by companies as a key factor in counteracting human rights risks. This includes, among other things, the payment of fair prices and premiums that enable a life in dignity.
But how big is the gap between actual income and different national and international benchmarks such as e.g. minimum income or living income? What is a fair price?
The Living Income Reference Price Estimator developed by GIZ is designed to help companies and other users answer exactly these questions. The tool enables the calculation of reference prices in up to 3 different production scenarios at once. Thus it serves to estimate the price required to achieve various income benchmarks such as living income under different conditions.
The data basis of the tool is the ALIGN database, which contains different national and international poverty benchmarks that are retrieved and updated for different countries and regions on a regular basis. For its analysis the tool requires information on the household composition as well as aggregated annual gross margin data. A short manual can be found on the first page of the tool.
Since the beginning of 2022, the tool is being used and tested in pilot measures of various projects. Based on the learnings gained, it will be continuously improved.
This is the first version of the GIZ Living Reference Price Estimator. Please make sure that you save the excel file in a secure folder, as macros are used. If you have any problems, please contact your company's IT department.
Improvements and additions to the tool are planned. Please contact us for questions or feedback at nicola.nuecken(at)giz.de.
The copyright is held by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
Developer: Tim K. Loos and Nicola Nuecken