Relevance Compilation Deinitions Local minimum wage
1. Relevance
Economic well-being is one of the ways in which an organization invests in its employees. This Indicator helps demonstrate how an organization contributes to the economic well-being of employees in signiicant locations of operation. The Indicator also provides an indication of the competitiveness of the organization’s wages, and information relevant for assessing the efect of wages on the local labor market. Ofering wages above the minimum can be one factor in building strong community relations, employee loyalty, and strengthening an organization’s social license to operate. This Indicator is most relevant for organizations in which a substantial portion of their workforce is compensated in a manner or scale that is closely linked to laws or regulations on minimum wage.2. Compilation
2.1 Identify whether a signiicant proportion of the workforce is compensated based on wages subject to minimum wage rules. 2.2 In percentage terms, compare local minimum wage to the reporting organization’s entry level wage by gender at signiicant locations of operation. 2.3 Identify the variation in the ratios across signiicant locations of operation. 2.4 Report the distribution of the ratio of the entry level wage by gender to the minimum wage. 2.5 Report the deinition used for ‘signiicant locations’. 2.6 For organizations that only ofer salaried employment, the salary should be converted into an hourly estimate. 2.7 Indicate whether a local minimum wage is absent or variable in signiicant locations of operation, by gender. In circumstances in which diferent minimums could be used as a reference, explain which minimum wage is being used.3. Deinitions Local minimum wage
Minimum wage refers to compensation per hour or other unit of time for employment allowed under law. Since some countries have numerous minimum wages e.g., by stateprovince or by employment category, identify which minimum wage is being used. Entry level wage Entry level wage should be deined by the full-time wage ofered to an employee in the lowest employment category. Intern or apprentice wages should not be considered.4. Documentation
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