Since 2023, Swedish home appliance giant Electrolux has been working to implement Living Wages across its direct operations. We sat down with Karolin Bagge (Director of Total Rewards, Europe APAC&MEA), Malin Ekefalk (Head of Social Sustainability), and Ahmed Amin (Manager of Total Rewards, Europe APAC&MEA) to learn more about their Living Wage journey.
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| Karolin Bagge | Malin Ekefalk | Ahmed Amin |
Why Living Wages Matter at Electrolux
Electrolux identifies 'Better Living' as a core pillar of its sustainability strategy. How does your commitment to living wages support this vision?
“Better Living” is embedded in our sustainability agenda. Our strategy is built on three core pillars: Better Operations, Better Solutions, and Better Living.
Early on, we identified wages as one of the key issues. We explored different ways to tackle it. Honestly, over the past 5–10 years, the landscape around living wages has evolved significantly. Initially, it was difficult to even define what a living wage was and where to get reliable data. I know you were also building your methodology during that time.
To make a long story short—we were quite happy when we discovered your work through IKEA. We had already seen the publicly available data you publish, including localised impact assessments. Some data we had found publicly available, e.g. for Ukraine and Egypt, but later on we also purchased your data sets for South Africa and China. From that point, we’ve seen rapid development. Your work, and IKEA’s leadership, have really helped us and others adopt best practices.
We’re glad to now be part of this effort—joining forces. Your data helps us address a very complex issue because you rely on credible, independent sources. We’ve noticed that in CSRD benchmarking, some companies define their own living wage, but what we do in collaboration with you is a very different and much more rigorous approach. I’m sure many others will follow suit eventually, but we’re proud to be among the early movers.
What were the key factors that led Electrolux to focus on living wages specifically? You mentioned IKEA, but were there other drivers?
Yes, definitely. One major influence was the introduction of the UN Guiding Principles on Business and Human Rights in 2011. These principles encouraged companies to map out their main human rights issues and impacts.
For us, even in the early days of our human rights work, it was clear that wages should be a focus area. Around 75% of our workforce is in factories, many of which are in emerging markets. We also reviewed publicly available data back then and realised this was a critical issue.
Later, the concept of “salient human rights issues” gained traction, which reaffirmed our decision to prioritise wages.
From Pilot to Global Rollout
What did the Living Wage implementation process look like?
There were three phases. The first was the pilot phase, covering around 10 locations across three countries. This was at the end of 2023, early 2024.
We want to highlight that this phase was crucial—it was an educational process. We were used to working with market data, but not from this angle—not through the lens of the Living wage framework provided by WageIndicator. So, it was a significant learning experience.
The results of the pilot were very encouraging, which led us to the next step: expanding to over 230 locations in more than 55 countries globally. This second wave began between July and August 2024.
Making the Data Work: Tools & Tactics
Why did you start working with WageIndicator?
We turned to WageIndicator for their clarity and support. When we received the data in July 2024, we weren’t sure how to interpret it—but Pauline, Daniela, and the team were incredibly responsive. Their quick answers and shared documents kept us on track.
Methodological transparency: Gaining insight into how living wages are calculated at the local level helped Electrolux understand the logic behind the numbers. We also learned what components should or shouldn’t be included in the Living Wage—monetary vs. non-monetary benefits, for example. This helped us make apples-to-apples comparisons. We built our own internal template to align employee compensation data with the defined living wage and our local salary structures.
Benchmarking with government minimum wages: WageIndicator’s inclusion of both living wage and minimum wage data enabled direct comparisons within each country.
Ongoing data monitoring: The availability of quarterly updates and an annual average (in October) allowed Electrolux to track progress, monitor risks, and respond to market changes in real time.
Because we already had an HR system in place, generating quarterly sheets was straightforward. Some companies don’t yet have that infrastructure and prefer yearly snapshots, but in our experience, that’s not ideal. The more frequently you review the data—twice or even three times a year—the better your ability to respond to risks and make timely adjustments.
Which living wage estimate do you use and are you paying a Living Wage everywhere?
Yes—if we look at the typical family lower bound, we are.
We worked with the “typical family” estimate, based on advice from WageIndicator, and used the lower bound as our benchmark in the first phase. Internally, we also compared our data to the “standard family” estimate to assess our position—but only for the July data, not the yearly average.
We believe the typical family model is a better reflection of the local workforce as it is based on nativity and unemployment rates.
How do you currently report on living wages?
We follow the Corporate Sustainability Reporting Directive (CSRD) standards. In our 2024 sustainability statement, we noted that no employees are paid below the benchmark. We also explained our methodology with some contextual information and mentioned that we use estimates provided by WageIndicator.
Overcoming Resistance
How do you approach communication and awareness-building within the organisation around this topic?
We’re still very much a work in progress. To underestimate this topic would be naive. We don’t want to present this article as if we’ve figured it all out after two years—as if it’s now fully integrated.
We know it needs to become embedded in how we work, and we’re making strides. But there’s still a way to go.
It’s also about understanding the impact of the advice we give the organisation—something we’re learning together with you, which we really appreciate.
What’s the next step in implementing the living wage programme?
The next step is to engage a larger part of our organisation, especially local HR teams. It's important that they understand the concept deeply, so we’re preparing for a journey of education and awareness.
Next Steps and Advice to Industry Peers
What’s your advice for companies just beginning their living wage journey?
- First, get organised. Structure your internal data and systems.
- Work closely with your wage data provider to understand different calculation elements.
- Treat this like a new learning area, regardless of past experience.
- Don’t overthink the consequences before starting—begin, then assess the results and next steps.
The interview was conducted by Paulien Osse, Global Lead for Living Wages and Co-founder of the WageIndicator Foundation, along with Pritha Bhattacharya, Global Lead for Newsletters, for the Living Wage Newsletter.
June 2025