Raising the Floor: Unilever on What It Takes to Pay a Living Wage

March 2026

A strong business case to pay a Living Wage

For Unilever, paying a Living Wage is one of the most powerful actions business can take to tackle inequality. And it also has business benefits, Karin explains: “Research we commissioned shows that a Living Wage improves worker satisfaction and productivity, reduces staff turnover and its associated costs and, in some cases, grows consumer markets by helping more people to have the means to buy consumer products, including Unilever’s.”

Lessons from a decade of progress

Unilever’s journey to Living Wage compliance began with the launch of Unilever’s Framework for Fair Compensation in 2014. By 2020, it had closed their Living Wage gap globally, and in 2021 it was recognised by the Fair Wage Network as a global living wage employer. Since then, Unilever’s focus has shifted to extending this commitment into their supply chain.

Along the way, several lessons stood out to Karin: “Sustained senior leadership support proved essential, as delivering Living Wages requires coordinated action across the business. Clear ownership and accountability helped translate ambition into action, while ongoing education and capability‑building ensured teams were equipped to deliver. Taking a phased approach also allowed us to respond to different country contexts and address barriers in a practical, scalable way.”

Why access to quality data matters

Unilever's next milestone is to reach 50% of procurement spend with suppliers that have signed its Living Wage Promise by 2026. To achieve that mission, Karin highlights how the importance of working with WageIndicator and other partners has been central to this effort.

“Access to credible data has been a critical enabler. To address long‑standing gaps in transparency, Unilever joined a coalition of companies investing in WageIndicator, helping make Living Wage estimates publicly available across more than 170 countries. This data supports suppliers with benchmarking and gives workers clearer information to advocate for fair pay”.

Moving suppliers from intent to action

The first critical step is to get suppliers to sign the Living Wage Promise, which commits them to assessing the gap between current wages and Living Wage estimates and taking action to close it. “Early surveys showed that many suppliers lacked awareness of what a Living Wage is or how to begin, so we launched a programme that provides tools, guidance and support to help suppliers move from intent to implementation.”, Karin explains.

To make meaningful progress toward decent livelihoods across the value chain, country context must be considered too, especially in times of hyperinflation: “Unilever prioritises geographies where the Living Wage gap is largest, social protections are weakest, and where the company has the greatest potential to influence change.” This includes countries facing high inflation, where wage erosion can be particularly acute.

Progress requires more than one company

Karin welcomes new regulations - such as the EU's Corporate Sustainability Due Diligence Directive - as a way to raise the floor for everyone. But regulation alone won't close wage gaps. "Companies need to act, governments need to strengthen minimum wage frameworks, and investors need to embed Living Wages into ESG expectations."

Besides WageIndicator, Unilever is working with key partners to advance Living Wages - including IDH and the World Benchmarking Alliance - and contributing to initiatives like the UN Global Compact's Forward Faster programme, which has brought more than 800 companies to commit to paying a Living Wage.

"Levelling the playing field is critical," Karin says, “which is why we are working with partners to drive this forward."

Written by:

Paulien Osse, Co-Founder and Global lead Living Wages

Blanca Civit, Public Relations Lead

Photo credit: Thiemi Higashi