Progress on Living Wage Efforts
Highlights from the 2024 Piloting Programme and the Living Wage Program 2025
On an aggregated level, 37.5% of employees (15,612 workers) were found to earn below the living wage, with an average living wage gap of 16.33% across all participating farms. However, the data also reveal that living wage gaps vary significantly between countries, reflecting differences in local wage structures, production conditions, and living wage benchmarks. A disaggregated analysis by gender further highlights disparities. Among male employees (36,497 workers), 36.3% earn below the living wage, with an average gap of 15.85%. Among female employees (5,099 workers), 46% fall below the living wage, facing a higher average gap of 19.39%.
Onsite Verifications to Ensure Data Quality
Following lessons learnt from previous wage data assessments which mostly relied on self-reported data and remote validations, onsite verifications were added as an integral project component to ensure the reliability and quality of the self-reported wage data. A total of 92 onsite verifications of the IDH Salary Matrix of 2022 were conducted by FLOCERT, an independent certification body, across sampled banana plantations. To streamline the process and reduce the verification burden for producers, GIZ aligned the sample selection closely with the other European retailer initiatives coordinated by IDH.
68% (63 plantations) received a positive verification result, confirming the accurate application of the IDH Salary Matrix and consistency of data. Of these farms, 60% showed a living wage gap for, on average, 50% of the workers, with an average gap of 17%. The remaining 32% (29 plantations) showed deviations, often due to errors in worker categorization, incorrect recording of overtime, and inclusion of non-applicable bonus. Of these farms with a negative result, 20% showed a living wage gap for, on average, 41% of the workers, with an average gap of 18%.
Key Insights and Recommendations
The verification exercise confirmed that most producers are able to apply the IDH Salary Matrix reliably but also highlighted the need for continued capacity building and technical support to ensure accurate data reporting across all farms.
FLOCERT and auditors recommended:
- strengthening training on living wage concepts and Salary Matrix use,
- harmonizing data collection systems to reduce manual entry errors, and
- exploring automated data quality checks to identify inconsistencies early.
Overall, the combination of expanded data collection, gender-sensitive analysis, and third-party verification provides a strong foundation for evidence-based action toward closing the living wage gap and promoting fair and sustainable income in the global banana supply chain. The insights gained will directly inform the ongoing development and further refinement of the Banana Project.
The Living Wage Piloting Programme (LWPP), launched in January 2024, marked a significant step forward in advancing living wages across banana supply chains in Latin America. Building on earlier pilots, the programme brought together 26 farms across six countries, reaching over 3,400 workers and engaging retailers, producers, and worker representatives.
Structured around four pillars - learning sessions, capacity development, wage data collection and verification, and responsible purchasing practices - the LWPP tested practical tools and approaches to closing wage gaps.
Retailers supported producers through voluntary financial contributions and responsible purchasing commitments, although scaling these efforts remains a challenge. In-person training and streamlined data systems emerged as key enablers for better implementation.
The initiative is continuing in 2025 and now reaching more than 400 participating farms with 37.000 workers. This years’ “Living Wage Program” is aiming to cover at least 50% of each retailer’s sourcing volume and align on scalable, risk-based approaches to wage improvement. The activities remain similar: capacity building offers, wage data collection and verficiation as well as the implementation of repsonsible purchasing practices.
Living Wage Piloting Programme 2024
