Glossary > Sustainability & Ethics > Living Wage

Living Wage

Sustainability & Ethics

In Simple Terms

A living wage is what farm workers need to earn per day to live decently. Most coffee farm workers earn below this benchmark - it's separate from the living income issue facing farmer-owners.

What is a living wage in coffee production?

A living wage is the hourly or daily wage required for a worker to afford a decent standard of living - covering food, housing, healthcare, education, clothing, and a modest buffer for savings. It is distinct from the minimum wage (the legal floor set by governments, which is often insufficient) and from the living income benchmark (which applies to self-employed producers rather than wage workers).

In coffee, the living wage concept applies primarily to hired workers on farms and at processing facilities - the pickers, wet mill workers, dry mill sorters, and other wage employees who don't own the coffee they're working with. Research consistently finds that coffee farm workers in most producing countries earn below the living wage benchmark for their region, even on farms supplying specialty markets.

The distinction between living wage and living income matters: producers (farm owners) need living income; their employees need living wages. A farmer who achieves living income may still be paying workers below living wage if labour costs aren't factored into the ethical sourcing framework. Certifications and sourcing programmes increasingly distinguish between the two - addressing producer income without attending to farm worker wages captures only part of the supply chain's ethical picture.