Below is a list of commonly used Living Wage terms and definitions:

Value Chain - the entire process of making, selling, and distributing commercial goods and services. Includes all people, companies, materials, resources and systems involved.

Supply Chain - the process of making and selling commercial goods, including every stage from the supply of materials and the manufacture of the goods through to their distribution and sale.

Own Operations - the wide range of operations over which a for-profit, non-profit, or government entity has the ability to exert control, specifically in relation to structures of remuneration. These are inclusive of directly contracted employees and core contractors e.g. workers performing roles that are the same as or similar to those of employees or workers otherwise engaged in the company’s core business. Additionally, regularly sub-contracted workers who work for 2 hours a week, for 8 or more consecutive weeks of the year directly for the entity are considered part of their own operations e.g. on-site janitorial staff, security, catering, etc. These workers are employed via third parties whose work is under the control of the third party and is not part of the entity’s core business.

Living Wage Benchmarks - Creation of cost of living data based on the remuneration necessary for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs including provision for unexpected events.

Assessing the Gap to Living Wage - Creation and sharing of tools and guidance to allow employers to accurately assess total remuneration against a Living Wage benchmark and measure the gaps that might exist between current remuneration structures and locally specific Living Wage benchmarks.

Closing the Gap to Living Wage - Work involving guidance directly to employers and entities engaging their supply chains to develop direct strategies to ensure that gaps to a Living Wage are closed.

Pre-competitive Collaboration - Collaboration involving two or more companies operating within the same industry, coming together to address a shared problem or challenge that doesn't impact direct business competition or contribute to unfair advantage.

Should other definitions be included? Contact global@livingwage.org.uk and let us know.