Fair Wage

What is a Fair Wage?

Producers receive a fair wage when they are paid fairly for their products. This means that workers are paid at least that country’s minimum wage. Since the minimum wage is often not enough for basic survival, whenever feasible, workers are paid a living wage, which enables them to cover basic needs, including food, shelter, education and health care for their families. Paying fair wages does not necessarily mean that products cost the consumer more. Fair Trade Organizations bypass exploitative middlepeople and work directly with producers.

What is a Living Wage?

Living wage laws help ensure that workers and their families

maintain at least a minimal standard of living and that the

benefits of economic activity are spread throughout the

community. Living wages benefit not only those who earn

them, but often, workers at many different wage levels see

their incomes increase as the wage floor is pushed upwards.

Living wages benefit the economy because low-income

families, in meeting their basic family needs, will spend

any increase in their wealth in the local economy in grocery

stores, the housing market, clothing stores, etc. The living

wage also benefits the community by reducing the costs of

public assistance.