Salient Issue

Living Wage

For workers, a decent standard of living depends on a wage sufficient for food, housing, education, health care, transportation, and other essentials. However, in many countries and industries, workers’ earnings come up short.

Wages that are grossly below a living wage have been documented in many commodities and countries. This includes wages for plantation workers in tea in Assam, India (wage gap of 81%) and Kenya (62%); flowers in Ethiopia (69%) and Kenya (48%); wine grapes in South Africa and Chile (50%); bananas in Côte d’Ivoire and the Dominican Republic (40%); and coffee in the Minas Gerais region in Brazil (40%).

On millions of small-scale farms, both hired workers and smallholder farmers live in poverty. Salaries for garment workers are also exceedingly low, with some estimating that workers in Bangladesh would need an 80% raise to get close to a living wage.

Piece rate work, which makes earnings unpredictable, is common throughout industries where Fairtrade works. For example, workers who harvest coffee are typically paid by the kilo, which makes their daily earnings reliant on weather and sick days are unpaid. Due to price pressures, banana plantations also increasingly resort to piece-rate, temporary, subcontracted or casual work, all of which push worker incomes lower.

Informal work is linked to a low pay and limited access to social security. Informality is a defining feature in the artisanal gold mining sector with workers’ earnings fluctuating wildly based on production, price level, and deductions for materials, royalties, and taxes.

Vague work terms leave workers uncertain about how much, when and where they will be paid. For example, many banana workers in Ecuador receive no written contracts or payslips.

Substandard benefits are a major risk in tea, wine, and fruit production. Tea workers often live on or near the tea plantation and rely on in-kind benefits from their employer. However, there are numerous instances where poor quality and costly housing, healthcare, education, and other benefits have exacerbated malnutrition and left tea workers indebted to their employers.

Wine workers in South Africa have reported employer-provided housing with no running water or electricity, mouldy walls, and broken toilets.

Migrant workers, minorities and women report particularly low wages. Nicaraguan migrant workers are often paid less than locals on pineapple plantations in Costa Rica, while the piece rate for home-based female sports balls stitchers in Pakistan is typically lower than for male factory workers.

Families of informally employed migrant sugar cane workers in India have been documented living in make-shift tents in the fields where they lack clean water and sanitation and are paid well below even the minimum wage.

According to research

Fairtrade improves farmer and worker incomes even though living incomes and wages are not always achieved.

A Fair Price for Human Rights Due Diligence, forthcoming December 2022, page 48.

Action

Fairtrade's response

A living wage is a human right. Furthermore, sufficient incomes are crucial to fulfil several other rights, including rights of the child, health, education, and a decent standard of living.

Living wages are a core goal in Fairtrade’s strategy. Our ambition is for workers to gain the power to negotiate on wages and conditions, and improve their own livelihoods. We advance this through a holistic set of measures: advocacy work, ongoing support for farmers and workers, Standards and auditing, development projects, awareness-raising campaigns, research and partnerships.

Fairtrade is the only certification that combines a fair Minimum Price for products and a set Premium that workers can invest according to their own priorities. Research typically finds that Fairtrade has a positive impact on incomes and economic resilience¹.

Every organisation involved in global value chains has a role to play in achieving living wages for workers on plantations, and other organisations with hired labour² and small-scale farms.

^{1: Jodrell and Kaoukji, 2022, Review of research on Fairtrade from 2015-2020; Mainlevel Consulting, 2022, Assessing the Impact of Fairtrade on Poverty Reduction and Economic Resilience through Rural Development.}
^{2: On this page, we use “plantations” to refer to organisations using hired labour.}

Fairtrade's response in detail

1. Preventive and mitigating measures

Fairtrade utilises a variety of tools to prevent and mitigate³ the risks around living wage at the plantation and farmer organisation level.

The Fairtrade Standards are one of the tools. The Standards include several requirements on wages:

Minimum wages. Both plantations and farmer organisations must set salaries for workers according to existing Collective Bargaining Agreements (CBA), official minimum wages for similar occupations or regional average wages, whichever is higher.
Deductions and in-kind benefits. All deductions from wages must be legal, approved by the workers, and in line with the actual costs of the offered in-kind benefit. Where housing is provided by the company, it must be in decent condition, regularly maintained and not over-priced.
Piecework requirements. Piecework is required to provide the same level of pay as hourly work, with a manageable workload and normal working hours.
Standard Innovation. Wage floors have been developed for some of the product-specific Fairtrade Standards. For flowers and plants, a Fairtrade wage floor was added in 2017. Achieving living wages will require long-term commitment with steady progress. Workers at one plantation in Tanzania saw wages increase by 30% and some plantations in Uganda had to double wages to become certified. A wage floor for bananas, which came into effect on 1 July 2021, marked a significant step towards a living wage for thousands of banana plantation workers, worldwide.
Continuous progress on wages. Plantations and other hired labour organisations must make continuous progress on wages with the goal of achieving a living wage. Companies must negotiate with elected worker representatives to establish a timeline towards a living wage that goes over and above inflation. In times of high inflation and economic turbulence, this can be a demanding requirement.
Collective negotiations. On plantations, the management must engage in collective negotiations on wages and working conditions with a trade union or other democratically elected worker representatives. Please see further information on the labour rights and conditions page.
Fairtrade Minimum Prices. The Minimum Price provides producers with a safety net against market price fluctuations. Buying companies must pay producers at least the Fairtrade Minimum Price or the market price when it is higher. Minimum Prices aim to cover the costs of sustainable production and are reviewed regularly in consultation with producers and traders. For a few commodities – flowers, herbs, herbal teas, spices and sugar – setting a Minimum Price is practically impossible given the number of variables, qualities and production areas. In these cases, Faritrade utilizes requirements in product-specific Standards to ensure that producers benefit from other aspects of the Standard.
The Fairtrade Premium. Buying companies are required to pay the Fairtrade Premium, which allows workers and farmers to invest in projects according to their priorities. Find an overview of the use of Fairtrade Premium here. Plantation workers decide democratically each year how to use their Premium money. Normally up to 20% can be distributed equitably amongst workers as cash. When the majority of workers are migrants, that limit increases to 50%. In banana production, where Premium revenue is highest, 30% must be disbursed in cash.

To explore the full set of Fairtrade’s Standards on living wage, please see the bottom of this page.

In many commodities, the Fairtrade Standards, auditing and corrective measures are insufficient for reaching living wages. Current wages are so far below living wages, that individual plantations and farmers have no way to achieve a living wage for workers and remain competitive in the market. Stronger minimum wage legislation and a more equitable distribution of value in the supply chain are needed to reach living wages and economic sustainability for farmers and plantations.

Fairtrade works to bridge wage gaps using a variety of tools and interventions:

Setting living wage benchmarks. As a co-founder of the Global Living Wage Coalition, we work with other certifications to establish independently validated country- and region-specific living wage benchmarks. These show the gap between current wages and the local living wage⁴. We have initiated and funded the creation of methodologies for rapid living wage assessment, for addressing gender pay gaps and for assessing in-kind benefits. A list of the 35+ available benchmarks can be found at the Global Living Coalition website.
Reducing gender wage gaps. Women are overrepresented among workers in low-paying jobs in agriculture. To narrow gender wage gaps Fairtrade seeks to advance women’s access to education, promotions, a safe workplace, and childcare. Please see the page on gender rights for further information.
Targeted projects. Fairtrade partners with committed companies to test mechanisms for wage increases and facilitate concrete collaboration among supply chain actors. The best practice section of the Fairtrade Trader Standard encourages this. For example, a Swiss retailer collaborates with Fairtrade to cover its share of the living wage gap on two banana plantations in the Dominican Republic, where it purchases 30-35% of the plantations’ volume.
Emergency support. During the COVID-19 pandemic, Fairtrade raised and distributed over 500,000 Euros to Fairtrade certified flower farms, which helped workers buy food and health equipment during a critical time.
Dialogue between brands and workers. Fairtrade seeks to bring worker perspectives to high-level supply chain conversations. For example, the FairVoice pilot project highlighted how workers on Kenyan flower farms were influenced by the COVID-19 pandemic, reduced flower orders and cancelled air freight connections in 2020. Extensive qualitative data was collected directly from workers via interactive text messages.
Partnerships. Fairtrade collaborates with numerous organisations on living wages. A recently announced partnership between Fairtrade and IDH will see Fairtrade utilising the IDH Salary Matrix to measure wages and implement unique Fairtrade add-ons that are being developed for the tool. Fairtrade also participates in the World Banana Forum of the FAO, the Global Deal, and collaborates with several trade unions and labour rights organisations (See the page of Labour rights and conditions).
Advocacy work. Fairtrade actively advocates for HREDD legislation that recognizes living wages and living incomes as indispensable steps in advancing human rights and environmental protection.
Awareness-raising among consumers. Fairtrade is a partner of the Good Clothes, Fair Pay campaign that encourages European citizens to call for a EU-wide living wage legislation across the garment, textile and footwear sector. Fairtrade cities, universities, schools, parishes, and workplaces are regular partners in this work.

At the export, import and manufacturing stages, Fairtrade’s interventions on labour abuse are currently narrower in scope than at the production stage. The Fairtrade Trader Standard requires companies to be aware of and comply with all national labour laws and fundamental ILO Conventions, including those on Freedom of Association and collective bargaining. These rules apply to all certified traders and manufacturers whether their national government has ratified these ILO Conventions or not. Compliance with these requirements is checked in audits if there are any indications of non-compliance, such as allegations made by third parties.

^{3: Mitigating measures reduce the likelihood of an adverse impact (UNGP Interpretive Guide, p. 12).}
^{4: Details on how we calculate a living income reference price can be found on the website of Fairtrade International.}

2. Remediating measures

Workers on farms and plantations remain among the most vulnerable actors in global trade. Globally, 21% of all workers live in poverty⁵.

Multiple global challenges, including climate change, the COVID 19 pandemic, high inflation rates and insufficient public services for farms and workers are further squeezing the profitability and workers’ wages on farms.

In this context, it takes collaboration among companies and governments to reach living wages in a specific supply chain – and Fairtrade cannot ensure living wages in all the supply chains originating at the 1,880 Fairtrade certified farmer organizations and plantations. Fairtrade does not guarantee living wages – we enable concrete steps towards them.

However, serious irregularities in wage payments raise concerns of forced labour. For instance systematic withholding of wages, unpaid overtime and deceptive deductions are among ILO indicators for forced labour. Whenever forced labour is identified or alleged, we act to protect the affected person(s) in line with our Protection Policy. We seek to work with national agencies and/or NGOs to enable remediating⁶ measures, safe withdrawal and long-term wellbeing of affected individuals, and we work with the producer organization to strengthen their preventive measures. Please see the page on forced labour for further information.

If FLOCERT, the independent Fairtrade auditing body, identifies a non-compliance with living wage related Standards requirements, it requires corrective measures. These include cessation of the existing violation, and a policy or project to prevent further non-compliance. The corrective measures must be implemented to avoid sanctions, which can include suspension and decertification⁷.

Fairtrade has a global level grievance mechanism – the allegations mechanism housed at FLOCERT – which is under reform to strengthen its alignment with the UN Guiding Principles on Business and Human Rights.

In addition, Fairtrade certified plantations are required to have a grievance mechanism in place. Grievance mechanisms are not yet required of farmer cooperatives or traders, but these organisations do need to address and document any human rights and environmental complaints related to Fairtrade Standards.

^{5: ILO, 2019, The working poor.}
^{6: Remediation refers to the process of counteracting or fixing a human rights violation through measures that can include apologies, restitution, rehabilitation, financial or non-financial compensation, and punitive sanctions, as well as preventing the repetition or further cases of harm (UNGP Interpretive Guide, p. 12)}
^{7: Details on the certification process can be found on FLOCERT’s website.}

According to a comparative study

Fairtrade is one of the stronger multi-stakeholder initiatives in advancing living wages.

MSI Integrity, 2020, Not Fit For Purpose, pages 93 and 104.

Compliance criteria

Living wage in Fairtrade Standards

Standard	Criteria	Type	Year
Small-scale producer organisation	You have set salaries for workers according to CBA regulations where they exist or at regional average wages or at official minimum wages for similar occupations, whichever is the highest. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent, and own processing facilities of any size)	M	0
Small-scale producer organisation	You have specified wages for all employee functions. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	For work based on production, quotas and piece-work, during normal working hours, you pay the proportionate minimum wage or the relevant industry average, whichever is higher. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent, and own processing facilities of any size)	M	0
Small-scale producer organisation	The pay rate for work based on production, quotas and piece-work is transparently calculated and workers and workers' organisations are informed of it. Workers agree that this rate is fair. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	Payment is made in legal tender; only when the worker explicitly agrees can payment be made in kind. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	You are gradually increasing salaries above the regional average and the official minimum wage. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	D	3
Small-scale producer organisation (Cocoa)	Whenever you sell cocoa products as Fairtrade, you indicate in the sales contract the amount of Fairtrade Premium to be paid, and Fairtrade organic differential when applicable, separately from the agreed sales price of the Fairtrade cocoa products (i.e. cocoa beans, cocoa liquor/mass, cocoa butter, and cocoa powder).	M	0
Small-scale producer organisation (Coffee)	When market prices for coffee are higher than the Fairtrade Minimum Price, you agree with the traders on coffee prices using the Fairtrade reference for market prices as follows: NYC (Arabica) or London RC (Robusta) plus prevailing differential. The reference market price can never be below the Fairtrade Minimum Price. A negative differential cannot be applied to the Fairtrade Minimum Price. The organic differential and Fairtrade Premium can never be below the levels defined in the Fairtrade Minimum Price and Premium table. The Fairtrade Premium and organic differential (in the case of organic coffee) are to be added, clearly separated from the prevailing differential, and are not subject to negotiations. The Fairtrade coffee price is as follows: Reference market price (NYC (Arabic) or London RC (Robusta) plus prevailing differential) or Fairtrade minimum price (whichever is higher) plus Fairtrade organic differential (in case of organic coffee) plus Fairtrade premium.	C	0
Small-scale producer organisation (Fresh fruit)	You transfer the money for Fairtrade fruit sales to the accounts of the members to which the sale corresponds.	C	0
Organisation with hired labour	The Fairtrade Premium benefits workers, their families and their communities.	C	0
Organisation with hired labour	The company sets wages for workers and other conditions of employment according to legal or CBA regulations where they exist, or at regional average wages or at official minimum wages for similar occupations; whichever is the highest, with the intention of continually increasing salaries.	M	0
Organisation with hired labour	The company has specified wages for all employee functions and employment terms, such as piecework.	C	0
Organisation with hired labour	Deductions from salaries are only made if they are permitted by national laws, fixed by a collective bargaining agreement or the employee has given his/her written consent.	C	0
Organisation with hired labour	The deducted amounts are in line with the actual costs incurred by the company, and they are not used for disciplinary purposes. (Only applicable if deductions are made from salaries by the company for services it provides)	C	0
Organisation with hired labour	For work based on production, quotas and piecework, during normal working hours, the pay is the equivalent to average hourly waged work based on a manageable work load and is not below proportionate minimum wage or the relevant industry average, which ever is higher.	C	0
Organisation with hired labour	Information about this pay rate, including how it is calculated, is transparent and available for all workers and worker organisations.	C	0
Organisation with hired labour	The company ensures that real wages (wages that have been adjusted for inflation) are increased annually. (Does not apply if clauses that ensure periodical inflation adjustment in addition to nominal wage increases are agreed in the CBA covering the workers in the company)	C	1
Organisation with hired labour	In order to continuously close the gap with living wage benchmarks as approved by Fairtrade International, steps for remuneration increases and the time line towards achieving the applicable living wage are negotiated with trade union representatives or in their absence other elected worker representatives elected to defend the interests of workers. The living wage benchmarks approved by Fairtrade International are the “Living Wage Benchmarks and Reference Values” published by the Global Living Wage Coalition, published at www.globallivingwage.org. Where living wage benchmarks have not been established, you ensure that regular wages are increased in addition to increases for inflation. (Not applicable if sectoral CBA in place and in effect)	C	1
Organisation with hired labour	Payment is made in legal tender.	C	0
Organisation with hired labour	A time bound plan exists for covering all permanent workers with a provident fund or pension scheme and it is implemented.	D	3
Organisation with hired labour	The requirements of the national legislation for provident fund or pension scheme are implemented. (Only applicable if there is a national legislation for provident fund or pension scheme)	C	0
Organisation with hired labour	Records of contracted workers (from the contractor) that indicate the number of workers, their payment and their working hours are available. (Only applicable if workers are subcontracted)	C	1
Organisation with hired labour	The housing ensures structural safety and reasonable levels of decency, privacy, security and hygiene. (Only applicable if the company provides housing)	C	3
Organisation with hired labour	There is regular upkeep of housing and communal facilities. (Only applicable if the company provides housing)	C	3
Organisation with hired labour	If sanitary facilities are shared, a reasonable number of toilets and bathing facilities with clean water, per number of users, and according to regional practice, are available. (Only applicable if the company provides housing)	C	3
Organisation with hired labour	National or state regulations are complied with in all cases and regional norms are taken into consideration. (Only applicable if the company provides housing)	C	3
Organisation with hired labour	Rent for housing is in accordance with local averages. (Only applicable if the company provides housing and charges rent)	C	3
Organisation with hired labour	Workers who are not able to receive free housing are compensated with an allowance that enables them to afford to rent a house of the same standard. (Only applicable if the company provides the majority of general workers with basic housing for free)	C	3
Organisation with hired labour (Banana)	Your company ensures that no worker is paid a wage, in cash after taxes and mandatory deductions, lower than the Fairtrade Base Wage as defined at the level of 70 percent of the Cash Living Wage applicable for your country. Calculation is made according to the guidance 'Calculating wages in the Fresh Fruit Standard' (https://www.fairtrade.net/standard/hl-fresh-fruit; Guidance on requirement 3.1.2).	C	0
Organisation with hired labour (Banana)	You ensure that no remuneration is worsened/reduced after the introduction of this requirement except when formally agreed with a trade union that has the right to bargain.	C	0
Organisation with hired labour (Banana)	Up to 30 percent of the Fairtrade Premium generated from sales as of 2021 is equitably disbursed among all workers in accordance with time worked, as a Fairtrade Bonus. (Applicable as long as there is a gap between the Living Wage Benchmark and the lowest net cash wage received by workers)	C	0
Organisation with hired labour (Banana)	Payments [of Fairtrade Bonus] are made in cash. Premium vouchers of equal value to cash disbursements can be disbursed in those origins where payment in cash is not an advantageous option. Your company demonstrates the transparency and accuracy of the payments made by the Fairtrade Premium Committee according to the rules described in this requirement.	C	0
Organisation with hired labour (Banana)	You ensure that no remuneration is worsened or reduced by the introduction of this requirement, except if it is formally agreed with a union with the right to negotiate.	C	0
Organisation with hired labour (Flowers)	Workers receive housing or have access to transportation free of charge where housing and infrastructure are not available in sufficient quantity and quality. If transport is provided, vehicles used are roadworthy and suitable for passengers, the drivers are qualified and experienced, and vehicles are not overloaded. (For workers who live more than 5 kilometres each way from the plantation)	C	0
Organisation with hired labour (Flowers)	Housing provided is adequate regarding privacy, basic services, including potable water, sewage, road access and where locally available, electricity.	C	0
Organisation with hired labour (Flowers)	The transport allowance covers the real transportation cost in public transport. (Applicable if a transport allowance is paid as alternative to offering free transport)	C	3
Organisation with hired labour (Flowers)	The base wages you pay (in-kind and monetary benefits not included) do not fall below the global poverty line set by the World Bank of currently $1.90/day Purchasing Power Parity (PPP). Any adjustment done by the World Bank is considered. No benefits have been worsened /reduced after the introduction of this requirement except when formally agreed with a trade union.	C	0
Organisation with hired labour (Fresh fruit)	You pay wages that do not fall below the global extreme poverty line ($1.90/ day PPP) set by the World Bank.	C	0
Organisation with hired labour (Sports balls)	The sports ball company ensures that all workers within the value chain receive at least the minimum wage stipulated by the government or earn the relevant industry average (whichever is higher) for all balls produced (Fairtrade or otherwise).	M	0
Organisation with hired labour (Sports balls)	Piece-rate workers receive a rate that is calculated based on the minimum wage. The company ensures that at the end of the month/working day the worker receives at least the minimum wage on a normal working hour basis.	M	0
Organisation with hired labour (Sports balls)	No deductions for quality, disciplinary or other reasons bring the actual wage received below the minimum.	M	0
Organisation with hired labour (Sports balls)	If the money earned from piece-rate work is higher than the minimum wage, workers will get the higher amount.	C	0
Organisation with hired labour (Sports balls)	The management ensures that in factories, factory-owned stitching centres and subcontracted units, charts of piece-rates and a chart of the official minimum wage(s) are placed publicly. The charts are easily visible and printed in the local language. If the piece rates or the official minimum wage(s) change, the charts are updated.	C	0
Organisation with hired labour (Tea)	If your company provides housing for permanent, migrant, seasonal/temporary or former workers, you regularly maintain and improve the houses, you clearly mark the housing area to indicate what is in the scope of provision by your company, and the following is ensured: - houses are located in areas that are free of hazards and houses structure provides protection against typical (heat, cold, rain, wind, damp) and extreme weather conditions, as well as protection against vermin and insects, with permanent walls, sealed and dry floors; non-leaking roofs, windows and doors. - houses have natural and artificial light, - cooking facilities with smoke ventilation and access to water that is suitable for drinking and eating. - doors that can be locked, - marked fire exits and firefighting equipment or fire drills with instructions, - safe electric installations, - well-functioning sewage and garbage disposal systems (Only applicable if the company provides housing) (For organisations certified before 1 April 2022 only applicable as of 01 April 2023)	C	0
Organisation with hired labour (Tea)	If your company charges rent for housing it is according to local averages. (Only applicable if the company provides housing) (For organisations certified before 1 April 2022 only applicable as of 01 April 2023)	C	0
Organisation with hired labour (Tea)	If your company provides the majority of general workers with basic housing, for free, you compensate workers who are not able to receive free housing with an allowance that will enable them to afford to rent a house of the same standard. (Only applicable if the company provides housing) (For organisations certified before 1 April 2022 only applicable as of 01 April 2023)	C	0
Organisation with hired labour (Tea)	Workers have the freedom to be able to choose if they want to be housed on the farm or not. (Only applicable if the company provides housing) (For organisations certified before 1 April 2022 only applicable as of 01 April 2023)	C	0
Organisation with hired labour (Tea)	You comply with national or state regulation in all cases and regional norms should be considered if they exceed this requirement. (Only applicable if the company provides housing) (For organisations certified before 1 April 2022 only applicable as of 01 April 2023)	C	0
Organisation with hired labour (Tea)	If your company provides housing for permanent, migrant, seasonal/temporary or former workers, you ensure safe and hygienic washing and sanitary facilities. You provide usable sanitary facilities (toilets and bathrooms) with clean water and of a style that is in accordance with regional practices. You keep washing and sanitary facilities safe and regularly maintain them with well-functioning sewage. You comply with national or state regulation in all cases and regional norms should be considered if they exceed this requirement. (Only applicable if the company provides housing) (For organisations certified before 1 April 2022 only applicable as of 01 April 2023)	C	0
Organisation with hired labour (Tea)	You complete an annual assessment of quality of housing, washing and sanitary facilities to maintain adequate quality and put in place an improvement plan based on the results of the assessment. The assessment is in written format and is shared with the Fairtrade Compliance Committee. The assessment includes: - Date when assessment was carried out - Total number of houses that company is providing or responsible - A register of workers and their families living within the housing compounds - Number of houses that need to be built or repaired - List of items that need to be built or repaired - Timelines for implementation correspond to the needs and urgency, and do not exceed 6 years from the date of assessment - Responsible person to check the improvements - Records of complaints from residents and corresponding activities (For organisations certified before 1 April 2022 only applicable as of 01 April 2023)	C	1
Organisation with hired labour (Vegetables)	You pay at least the relevant market price or the Fairtrade Minimum Price (as defined in the Fairtrade pricing database) to the Small Producer organisation – whichever is higher. If the price you pay for the Fairtrade product significantly deviates from the relevant market price, you are able to provide a rationale/justification. (Applicable to companies in Africa except Northern Africa)	C	0
Trader	You set salaries for employees to legal and CBA regulations where they exist.	R	0
Trader	Deductions from salaries are only made if they are permitted by national laws or fixed by a collective bargaining agreement.	R	0
Trader	Payments are made in line with national regulations.	R	0
Trader	You comply with applicable legislation for provident fund or pension scheme.	R	0
Trader	You fulfil your role as Fairtrade price and/or Fairtrade Premium payer and/or conveyor as defined in Annex 1 of the Fairtrade Trader Standard or in the relevant product Standard or in an alternative arrangement (if this is allowed in Annex 1) that is agreed between all affected parties (including the producer), documented in writing and reported to the certification body. (Payer, conveyor)	M	0
Trader	You pay at least the relevant market price or the Fairtrade Minimum Price - whichever is higher - to the producer (or the conveyor) (as defined in the Fairtrade pricing database or the relevant product Standard). (Payer, conveyor)	M	0
Trader	You agree with the producer on the source of information for the market price. If available, you use the market price reference indicated in the product standard. (Payer, conveyor)	C	0
Trader	If the price you pay for the Fairtrade product significantly deviates from the relevant market price, you are able to provide a rationale/justification. (Payer, conveyor)	C	0
Trader	Discounts for quality cannot be made on the Fairtrade Minimum Price. The Fairtrade Minimum Price is an absolute minimum. (Payer) (Applicable to conveyors when calculating the differential)	M	0
Trader	In case the Fairtrade Minimum Price is set at a different level in the supply chain (different product form, different incoterm) than the one you are buying at, you adjust the Fairtrade Minimum Price accordingly. The calculations are transparent and reflect real costs. (Payer)(Applicable to conveyors when calculating the price difference)(Not applicable to cocoa purchases from Ghana or Ivory Coast and not to oranges for juice)	C	0
Trader	In case the producer is responsible for some additional costs that are NOT included in the Fairtrade Minimum Price (e.g. packing), you take these costs into account when calculating the Fairtrade Minimum Price. Then the applicable Fairtrade Minimum Price is the Fairtrade Minimum Price plus the costs that the producer is responsible for. (Payer) (Applicable to conveyors when calculating the differential)(Not applicable to cocoa purchases from Ghana or Ivory Coast)	C	0
Trader	You pay at least the Ex Works Fairtrade Minimum Price, if it exists. In case there is only a FOB Fairtrade Minimum Price available, you may deduct reasonable transport and export costs from the price to calculate the Fairtrade Minimum Price at the level at which the producer sells. (Payer)(Applicable if you buy Fairtrade products from producers for sale within the producer country)(Not applicable cocoa purchases from Ghana or Ivory Coast)	C	0
Trader	You take into account the producer’s processing costs and processing ratio in the calculation of the price of the processed product. This price covers at least the Fairtrade Minimum Price of all Fairtrade inputs and the processing costs. (Payer) (Applicable if you are buying a processed product from a producer and a Fairtrade Minimum Price only exists for the raw product but not for the processed product)	C	0
Trader	The Price at Ex Works level includes the Certification Costs (GBP 0.01 per kg of conventional produce and GBP 0.03 per kg of organic produce) which are paid to the Promoting Body. The Certification Costs are deducted from the Price paid to the individual producers, i.e. from the Fairtrade Minimum Price or the market Price, whichever is higher. (Payer) (Only applies to organic and conventional dried apricots and conventional dried wild apricots sourced from Contract Production set-ups)	C	0
Trader	The price at Ex Works level includes the Certification Costs (GBP 0.01 per kg of conventional produce and GBP 0.03 per kg of organic produce) which are paid to the Promoting Body. The Certification Costs are deducted from the price paid to the individual producers, i.e. from the Fairtrade Minimum Price or the market price, whichever is higher. (Payer) (Only applies to almonds, apricot seeds and walnuts sourced from Contract Production set-ups in Pakistan)	C	0
Trader	You pay at least the relevant market price to the producer. (Conveyor)	M	0
Trader	You pay at least the Fairtrade Minimum Price to the producer (or the conveyor) (as defined in the Fairtrade pricing database or the relevant product Standard). (Digital audit) (Payer, conveyor)	M	0
Trader	For products that do not have a defined Fairtrade Minimum Price, the market price has been paid. (Digital audit) (Payer, conveyor)	M	0
Trader	On top of the price for the Fairtrade product, you pay the relevant producer (or the conveyor, or Fairtrade Premium Committee, if applicable) a Fairtrade Premium as defined in the Fairtrade pricing table for the Fairtrade product bought. No discounts are made to the Fairtrade Premium. (Digital audit) (Payer)	M	0
Trader	You pay the Fairtrade Premium to the producer (or Fairtrade Premium Committee, if applicable), if the Fairtrade Premium is conveyed via your company. No discounts are made to the Fairtrade Premium payment. (Digital audit) (Conveyor)	M	0
Trader (Cane sugar)	You agree the price and payment terms with the producer. (Conveyor) (Not applicable if prices are defined by national authorities through mechanisms such as revenue sharing systems or if the price is set by the government)	C	0
Trader (Cashew Nuts from Africa)	You pay the Fairtrade Minimum Price for at least 80% of the nuts purchased. The remaining volume (maximum 20% of the total volume purchased as Fairtrade) may be sourced at market prices. If you sell more than 80% of the nuts (or the kernels derived thereof) as Fairtrade, you pay difference between Minimum and paid market price to the producers on the volume sold on as Fairtrade. (Payer) (First buyer in producing country) (Applicable if the Fairtrade Minimum Price is higher than the Market Price)	C	0
Trader (Cashew Nuts from Africa)	If you import Raw Cashew Nuts you pay the Fairtrade Minimum Price or market price, whichever is higher and the Premium on the whole raw cashew nut quantity purchased. In case corresponding FOB prices for kernel outputs sold as Fairtrade minus transportation and processing costs lead to a figure higher than the paid raw cashew nut Fairtrade Minimum Price, you pay the producers the difference. (Payer)	C	0
Trader (Cocoa)	You ensure that a reference on the market price, either New York (ICE FUTURES US) or London (ICE FUTURES EUROPE) is included in your contract with the producer (or the conveyor) unless official prices have been set by the national government. (Payer, conveyor)	C	0
Trader (Cocoa)	You clearly indicate the amount of Fairtrade organic differential to be paid, separately from the price, in the purchase contract with the producer organisation (or conveyor, if applicable). (Payer, conveyor) (Applicable only if you buy organic FT cocoa products from a producer organisation or conveyor)	C	0
Trader (Cocoa)	You pay the producer (or the conveyor, if applicable) the difference between the Fairtrade Minimum Price and the market price reference (for conveyors: received from the payer) in case the market reference price (as per the Cocobod or CCC) is below the Fairtrade Minimum Price. (Payer, conveyor) (Applicable for purchases from Ghana and Ivory Coast)	C	0
Trader (Coffee)	You ensure that the real costs of storage, interest and insurance are paid by you and are detailed in the contract. (Payer, conveyor) (Only applicable if you have requested an extension of shipping schedule beyond the timings of normal commercial practices, i.e. three months after the harvest)	C	0
Trader (Cocoa)	You negotiate the price of the semi-processed product with the producer. This negotiated price is based on, at least, the cocoa beans reference values of USD 2150/MT (for conventional) and USD 2450/MT (for organic) at producers’ level plus all relevant processing costs. The Fairtrade Minimum Price is calculated using the average processing yield calculated by the producer. It is only if this information is not available to the producer that the processing yields from beans in 4.2.6 (Cocoa product standard) apply. (Payer) (Applicable only if you are buying semi-processed cocoa products from producer organisations)	C	0
Trader (Coffee)	You, (who is requiring the services of the broker mentioned in the contract) have paid the broker’s commission. (Payer, conveyor) (Only applicable if a broker has been used)	C	0
Trader (Coffee)	You do not make any discount from the Fairtrade Premium. If deducting costs from the Fairtrade Minimum Price, you only consider the items included in the generic guidance document issued by Fairtrade International. (Payer, conveyor) (Applicable only if not buying green exportable coffee at FOB level)	C	0
Trader (Coffee)	When market prices for coffee are higher than the Fairtrade Minimum Price, traders and producers are to agree coffee prices using the Fairtrade reference for market prices as follows: NYC (Arabica) or London RC (Robusta) plus prevailing differential. The reference market price can never be below the Fairtrade Minimum Price. The ‘prevailing differential’ refers to the average differential or range valid in the mainstream market for conventional coffee of that country and grade at that moment. Producers and buyers agree upon a differential, using the differential that prevails in the mainstream market for non-Fairtrade coffee, as a baseline, and taking into account actual quality, shipment date, logistics, risk, and availability. A negative differential cannot be applied to the Fairtrade Minimum Price. The organic differential and Fairtrade Premium can never be below the levels defined in the Fairtrade Minimum Price and Premium table. The Fairtrade Premium and organic differential (in the case of organic coffee) are to be added, clearly separated from the prevailing differential, and are not subject to negotiations. The Fairtrade coffee price is as follows: Reference market price (NYC (Arabic) or London RC (Robusta) plus prevailing differential) or Fairtrade minimum price (whichever is higher) plus Fairtrade organic differential (in case of organic coffee) plus Fairtrade premium. (Payer, conveyor)	C	0
Trader (Coffee)	You do not demand payment terms to suppliers that result in additional financing costs being passed on to producer organisations and negatively impact the Fairtrade Minimum Price and Fairtrade Premium. (Payer, Conveyor)	C	0
Trader (Coffee)	You do not buy Fairtrade certified products from a producer organisation on the condition that the producer organisation sells a quantity of non-certified product at a discount. (Payer, conveyor)	C	0
Trader (Flowers and plants)	You pay the difference between the Fairtrade Minimum Price and the price at which you initially bought the product from the producer in case the Fairtrade Minimum Price is higher and/or the Fairtrade Premium to the producer no later than 30 calendar days after receipt of payment from the Fairtrade payer. (Conveyor)	C	0
Trader (Gold)	Transportation and insurance costs from point of export are paid by the importer (buyer), unless the ASMO (or the miner) and the importer agree on other arrangements that are not detrimental to the ASMO (or the miner). (Payer)	C	0
Trader (Oranges for juice)	You pay the producer the price difference between the Fairtrade Minimum Price and the price at which you initially bought the product from the producer in case the Fairtrade Minimum Price (or the adjusted price if set at a different level) is higher. (Oranges for juice) You pay the producer the differential if there is a difference between the price paid to producers for the oranges for juice based on the preliminary analysis report and the FOB orange juice price received when selling the orange juice. (Conveyor) (Not applicable to cocoa purchases from Ghana or Ivory Coast)	C	0
Trader (Oranges for juice)	You pay the producer the price for the equivalent quantity of juice that their oranges produce (FCOJ or NFC, depending on what is sold to the importer) according to the yield in the preliminary analysis report. The price paid to the producer for the oranges for juice is calculated using the percentages based on the FMP or market price, whichever is higher, as defined in 5.4.3 of the Fresh fruit (HL) standard and 4.2.3 of the Fresh fruit (SPO) standard. (Conveyor)	C	0
Trader (Oranges for juice)	You do not make any deductions from the indicated percentage of the FOB price, whether applied to the Fairtrade Minimum Price (FMP) or the market price. (Conveyor)	C	0
Trader (Orange juice; Coffee, applicable to green bean sales and purchases)	You do not sell or buy Fairtrade products below the Fairtrade minimum price, the Fairtrade premium and the organic differential (if applicable).	C	0
Trader (Sports balls)	You have paid a surcharge of up to 5% of the negotiated price as Compliance Costs Compensation if invoiced by the producer. (Payer)	C	0
Trader (Tea)	If the original invoice price for the Tea was below the applicable Fairtrade minimum price for that country/region you pay the difference along with the due Fairtrade Premium. (Payer, Conveyor) (Applicable in case of retro-certification)	C	0