Announcement on the Revised Living Wage Strategy

The RSPO Secretariat is pleased to announce that a revised strategy on living wage (LW) has been developed, and has been approved by the Living Wage Taskforce and endorsed by the Standards Standing Committee (SSC).

Departing from the previous benchmark-focused methodology, the revised strategy adopts a stepwise approach to LW implementation, wherein each step of the LW trajectory has its own milestones (outcomes) towards achieving living wage payment to all workers in the palm oil sector.

The first step, which will be carried out from 2023-2026, will focus on creating a clear understanding among stakeholders through capacity building, improving auditability, enhancing the prevailing wage calculation, and developing a wage reporting system. This step aims to establish a standardised method for determining prevailing wages, monitor wage changes over time, and enhance the effectiveness of audits.

Considering the various implementation challenges and recognising the complexity of the issue of living wage, benchmarking related activities has been postponed for the time being.

If you have any questions, or would like to speak further about this with the RSPO, please contact the Human Rights and Social Standards (HRSS) team at [email protected].