ESRS Standard
ESRS Standard
67 The company shall disclose whether its employees receive an Adequate wage and, if not, the countries and percentage of employees affected.
68 The objective of this disclosure requirement is to provide an understanding of whether all of the entity's employees receive an Adequate wage that is consistent with the applicable benchmark.
69 The entity shall disclose whether all of its employees are paid Adequate wages in accordance with the applicable benchmarks. If so, this disclosure is sufficient to fulfill this disclosure requirement and no further information is required.
70 If not all of its employees are paid an Adequate wage in accordance with the applicable benchmark, the company discloses the countries in which the employees are paid below the applicable benchmark for an Adequate wage and the percentage of employees whose Wage is below the benchmark for the respective country.
See also Application Requirements AR 72 - AR 74
71 The company may also provide the information specified in this disclosure requirement in relation to Non-employees working for it.
Application Requirements (AR)
Application Requirements (AR)
AR 72 The lowest Wage is calculated for the lowest pay category, excluding interns and apprentices. This is based on the basic income plus any fixed additional payments guaranteed to all Employees. The lowest Wage is stated separately for each country in which the company operates, except for countries outside the EEA where the appropriate appropriate wage or minimum wage is set at sub-national level.
AR 73 Adequate wage reference values used for comparison with the lowest Wage shall not be lower than:
(a) in the EEA: the minimum wage set in accordance with Directive (EU) 2022/2041 of the European Parliament and of the Council(26 56 110) on adequate minimum wages in the European Union. Until the entry into force of Directive (EU) 2022/2041, in cases where there is no statutory or collectively agreed minimum wage in an EEA country, the Company shall use a reference value for an Adequate wage that is either not lower than the minimum wage in a neighboring country with a similar socio-economic status or not lower than a generally accepted international standard, e.g. 60% of the median wage of the country and 50% of the gross average wage.
b) outside the EEA:
i. the wage level set out in existing international, national or sub-national legislation, official standards or collective agreements, based on an assessment of the wage level required for a decent standard of living,
ii. if none of the instruments referred to in point (i) exists, a national or subnational minimum wage established by legislation or Collective bargaining, or
iii. in the absence of any of the instruments referred to in point (i) or (ii), any benchmark that meets the criteria of the Sustainable Trade Initiative, including applicable benchmarks aligned with the Anchor Methodology or provided by the Wage Indicator Foundation or the Fair Wage Network.
AR 74 Directive (EU) 2022/2041 on adequate minimum wages in the European Union mentions both commonly used benchmarks at international level, such as 60% of the gross median wage and 50% of the gross average wage, and indicative benchmarks used at national level. The data for the reference values of 60% of the national gross median wage or 50% of the national gross average wage can be taken from the European Labor Force Survey.
Examples from previous practice
Examples from previous practice
Examples serve only as an indication of how a disclosure obligation has been stated by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
S1-10 - Fair remuneration
Commitment to fair remuneration and social standards
Our company ensures that all employees in European countries receive appropriate remuneration that complies with the European Union's directive on adequate minimum wages. In non-European countries, we are guided by the respective national standards to ensure fair pay. National benchmarks are always taken into account when determining wages in order to ensure fair remuneration.
At the same time, we operate in regions with an increased risk of human rights impacts. These include countries where the minimum wage is below the living wage, as our human rights risk analysis has shown. Last year, we launched a global analysis project in which external experts examined our remuneration and social benefits. The aim is to further improve our actions for fair pay and working conditions. Based on the results, which will be available shortly, we are developing an action plan to specifically address identified challenges.
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