8. Living Wage

INTENT

The intent of the Living Wage Indicator is to ensure that all employees are provided with wages that support a healthy standard of living in the local community where they live and work.

METRICS

Level 1

1. Organization has a written policy that includes its living wage commitment.
   

Level 2

1. Organization has a written policy that includes its living wage commitment.
   U.S.-based organizations demonstrate their lowest-paid employee wage is compliant with the MIT Living Wage Calculator rate at the 1 Adult/0 Children family unit or $17/hour, whichever wage is greater.
2. Organizations outside of the U.S. commit to a living wage framework relevant to their area that is widely recognized and regularly updated by a non-governmental organization (NGO) or educational institution.
   • If no living wage framework exists, the organization pays a living wage that is at least 200% of the applicable minimum wage.

Level 3

1. Organization has a written policy that includes its living wage commitment.
   U.S.-based organizations demonstrate their lowest-paid employee wage is compliant with the MIT Living Wage Calculator rate at the 2 Adult (1 working)/0 Children family unit.
2. Organizations outside of the U.S. commit to a living wage framework as referenced at Level 2 + 10%.
   • If no living wage framework or calculator exists, the organization pays a living wage that is at least 225% of the applicable minimum wage.

Level 4

1. Organization has a written policy that includes its living wage commitment.
   U.S.-based organizations demonstrate their lowest-paid employee wage is compliant with the MIT Living Wage Calculator rate at the 2 Adult (1 working)/1 Child family unit.
2. Organizations outside of the U.S. commit to a living wage framework as referenced at Level 2 + 20%.
   • If no living wage framework or calculator exists, the organization pays a living wage that is at least 250% of the applicable minimum wage.

SUMMARY TABLE

Table 8a – Living Wage Metrics