PA05: Fair Remuneration
... workers are to be paid:
- minimum wage
- timely, regularly, stable and fully in legal currency
- reflecting the skills and experience of workers
- including mandatory social benefits
- only deduction allowed by law
PA05: Fair Remuneration
5.1 CRUCIAL QUESTION: The Auditee complies with the Government's minimum Wage Legislation, or the Industry Standard approved through collective Bargaining (if applicable).
... make all efforts to:
- know minimum wage or industry standard ...
- NOT below the minimum amount or standard
- above the minimum to those workers that due to their seniority or skills ...
- pay slips for at least 12 months
... special attention on the way payment is done to: part-time, piece-rate, probation, hired through agencies, in a cooperative workers
PA05: Fair Remuneration
5.2 Wages are paid in a timely, regular and stable Manner, and fully in legal Tender
... pays workers:
timely, regularly, transparent, stable, fully in legal tender, ...
... aware of and keeps records: worker hired through agencies are paid HOW? minimum wage? other benefits? admin costs for the broker or agency?
→ Ask your suppliers everything.
PA05: Fair Remuneration
5.3 The level of Wages reflects the Skills, Seniority, Responsibilities and Education of Workers
workers' skills, seniority, responsibility and education are taken into consideration: hiring process, assigning salaries and assigning tasks
Having a highly skilled worker receiving a low-skilled worker salary is not acceptable and it may be a sign of discrimination or a practice against the law. Makes sure that:
- job descriptions with required skills list
- human resources and supervisors are trained to assess workers' skills
- regular trainings to workers
- to consult with people in charge of doing OSH and RA
- skill matrix or similar for ranking salary brackets, and promotion
PA05: Fair Remuneration
5.4 The Auditee provides sufficient Remuneration that allows Workers to meet a decent Living Standard
... to ensure that workers can meet a decent standard of living.
... may use self-assessment to estimate the living costs in its region and ... This will be acknowledged by the auditor as a good practice. To reference Anker Methodology in the calculation of living wage.
Totol remuneration include: wages for standard working hours,
social benefits, in kind benefits and bonuses, transportation, ...
not
include: uniforms, PPEs, mandatory training as part of job requirements, workplace tools.
Anker Methodology → https://www.globallivingwage.org/about/anker-methodology/
PA05: Fair Remuneration
5.5 The Auditee provides Workers with the social Benefits that are legally granted without negative Impact on their Pay, Seniority, Position, or Promotion Prospects
Social benefits → regardless of seasonal workers, paid based on productivity, migrant workers, women or men.
Mandatory social benefits usually are: old age pension, survivor's benefits, family benefits and parental leave, medical care, unemployment, sick leave, disability, work-related injury, and vacation
Collective bargaining agreement: must be respected.
Commercial insurance: ... will need to explain this ...
Gov. + Commercial insurance: → Good Practice
PA05: Fair Remuneration
5.6 CRUCIAL QUESTION: The Auditee ensures that Deductions from Wages are only taken under the Conditions and to the extent prescribed by the Law
... cannot apply deductions to workers' wages if they result in: being less than minimum wage, for employer's economic benefit and discrimination.
Training sessions: ... workplace situations beyond their control.
Closure of production site: ... ???
Objects or services: ... cannot be made for the use of objects, buildings, or services, the costs of documents and permits.
Market rate: ...
Disciplinary measures: ... can only occur under the conditions specified by law or the conditions defined in a freely negotiated and established collective bargaining agreement.
PA05: Fair Remuneration
Required Documents
- Documented evidence of legal deductions for goods and services
- Documentation of legal minimum wages relevant for the sector
- Documented collective bargaining agreement
- Pay slips for workers-gender-disaggregated ...
- Completed fair remuneration calculated based on the self-assessment
- Auditee's contracts with labour subcontractors and service providers including recruiting agencies or labour brokers
- Personnel data files for all workers (including seasonal workers)
- Documented evidence of additional benefits
- Documented evidence of updated contributions to social insurance funds
- Lists of wage ranges and calculations including for piece rate workers
