Question 1

What is the GapCheck?

Accepted Answer

The GapCheck is a tool that allows you to compare your basic wage (guaranteed pay without extras) with the Living Wage estimate for your region.Companies often use this to understand what counts as a basic wage and what should be considered extras, like bonuses, allowances, or in-kind benefits. If there's a difference between your basic wage and the Living Wage, the tool will show the gap in red.

Question 2

Why use the GapCheck?

Accepted Answer

Companies that want to implement a Living Wage policy need to know the difference between basic pay and extras, like bonuses, allowances, or in-kind benefits. A Living Wage is about guaranteed basic wage, not dependent on overtime or performance. The GapCheck focuses on what the employee receives for regular work, without conditions.

Question 3

What does the Fast Track GapCheck do?

Accepted Answer

The Fast Track is a quick check to see if your basic wage is close to the Living Wage in your area.

Question 4

What does the GapCheck for one employee (yourself) do?

Accepted Answer

The GapCheck for an employee (yourself) is a detailed check. It asks questions about your wage, bonuses, allowances, and in-kind benefits (if any). It's useful for both workers and companies to get a clear first insight.

Question 5

What does the GapCheck for a group or all employees do?

Accepted Answer

The GapCheck for a group or all employees is a contact form. The idea: companies can ask for a pre-filled self-explanatory Excel sheet to input wages and benefits. With a few simple steps, the company can analyze the gap. WageIndicator can assist over email. This route is not for free.

Question 6

Why does the GapCheck always refer to the latest month?

Accepted Answer

This is because the GapCheck is always up to date! It uses the most recent Living Wage estimates (from the last quarter) and compares them to your most recent salary.

Question 7

What is a Living Wage or a Typical Family Living Wage?

Accepted Answer

For details related to Living Wages, check the FAQ for Living Wages.

Question 8

Which countries are available in GapCheck?

Accepted Answer

See the list of available countries and regions, updated quarterly.

Question 9

What to include and excude in the paid wage?

Accepted Answer

WageIndicator suggests the below principles when looking at what to include or what to exclude in the implementation of Living Wage payments. Inclusion and exclusion in the paid wage Item Include in paid wage Basic wage for full-time worker Yes Shifts, unsocial hours, or weekend work allowance No Hardship allowance No Production bonus No Seniority or skill bonus No Cost-of-living adjustment No 13th month / 14th month salary Yes, if divided by 12 End of year / Christmas / Eid – bonus Yes, if divided by 12 Holiday / visit 'home' bonus Yes, if divided by 12 Free housing and utilities, such as water or electricity Yes, cash equivalent with limitations (not more than 25% of the Living Wage in total and not more than the calculated component) Free meals / food rations given for free at work Not recommended, but the cash equivalent can be considered with limitations (not more than 25% of the Living Wage in total, not more than the relevant portion of the calculated component) Free transport / free fuel / free car to and from the place of work Not recommended, but the cash equivalent can be considered with limitations (not more than 25% of the Living Wage in total, not more than the relevant portion of the calculated component) Free school for workers’ children provided by employer Yes, cash equivalent with limitations (not more than 25% of the Living Wage in total and not more than the calculated component) Private medical insurance / free medical services, paid by the employer Yes, cash equivalent with limitations (not more than 25% of the Living Wage in total and not more than the calculated component) Savings fund No Note: the total of the cash-equivalents cannot be more than 25% of the Living Wage Source: WageIndicator Foundation 2024

Question 10

Want to understand all the steps of the GapCheck and what to include or exclude?

Accepted Answer

Check chapter 6 of the Living Wages FAQs.

Question 11

Do WageIndicator rules differ from the rules of the other players in the Living Wage space?

Accepted Answer

Yes, there are differences. WageIndicator tries to make Living Wages implementation easy, therefore also the analysis by the GapCheck is kept simple. The basic wage is what everyone receives without any addition. Bonuses/allowances/in-kind are only included if all employees get them and they are guaranteed. Some in-kind items (like housing or schooling) can be counted, up to a limit. Other organizations (like IDH’s Salary Matrix) may allow more flexibility—for example, setting the limit to in-kind benefits to 30%, instead of the 25% limit of the WageIndicator GapCheck. Other players in the field allow to include overtime in the basis wage, while WageIndicator assumes not more than a full-time standard working week.

Question 12

Why are rules needed to implement Living Wages and to define the gap?

Accepted Answer

Without clear rules, any company could claim to pay a Living Wage even if most workers don’t actually receive it.Example 1: If a 13th-month/Eid/Christmas bonus is counted, but workers are fired before receiving it, it's not real. It should be included only when all workers get it proportionally every month.Example 2: If someone works 60–80 hours a week, their overtime pay shouldn't be used to claim Living Wage. The comparison should be based on a standard full-time week only, which is what the WageIndicator Liivng Wages are calculated for.

FAQ - GapCheck