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Wages and Benefits - Base Wages and Payment Practices

  • Updated

Each question below includes its SLCP/FSLM key and the related recommendation. In some cases, the same guidance applies to multiple IDs.

Table of Contents

Are wage payments made regularly and on time and in line with legal requirements?

wb-14

Recommendations

  • Follow legal deadlines for wage payments (e.g., weekly, biweekly, or monthly as required). 
  • Establish clear payroll processes to prevent payment delays. 
  • Ensure workers receive their full legally mandated wages, including overtime and benefits. 
  • Audit payroll records regularly to confirm compliance. 
  • Issue detailed payslips with a breakdown of earnings, deductions, and overtime. 
  • Educate workers on how their wages are calculated. Ensuring timely, full, and legally compliant wage payments, facilities can avoid legal risks, improve worker satisfaction, and align with international labor standards.

 

Are pay slips in a language all workers can understand?

Wb-16--2

Does the facility maintain only one accurate payroll record?

Wb-2--2

Is there written documentation surrounding the terms and conditions of the granting and repayment of advances and loans?

wb-17--3

Recommendations

  • Workers must sign off when they receive loan payouts. Each loan repayment should be documented and signed by the worker. Use simple, clear language for loan and advance agreements.
  • Translate documents into workers’ native languages if needed. 
  • Repayments must not reduce wages below the legal minimum. Ensure that deductions do not exceed legally allowed limits. 
  • Ensuring loan agreements and repayments are properly documented and confirmed by workers, facilities can reduce financial risks, maintain compliance, and improve worker relations.

 

If yes, do workers confirm the accuracy of payouts and re-payments in writing?

wb-17--4

Recommendations

  • Workers must sign off when they receive loan payouts. 
  • Each loan repayment should be documented and signed by the worker. Use simple, clear language for loan and advance agreements. 
  • Translate documents into workers’ native languages if needed. Repayments must not reduce wages below the legal minimum. 
  • Ensure that deductions do not exceed legally allowed limits. 
  • Ensuring loan agreements and repayments are properly documented and confirmed by workers, facilities can reduce financial risks, maintain compliance, and improve worker relations.

 

Payroll records for each worker are not maintained for at least the last 12 months

wb-wage-93x

Recommendations

  • Ensure that all employees—both direct hires and sub-contracted workers—are included in one payroll system. 
  • Records must be clear, up-to-date, and aligned with actual wages paid. 
  • Ensure that all deductions, overtime pay, and benefits are properly recorded and comply with legal standards. 
  • Employers must ensure payroll records are kept for the required number of years to comply with labor regulations. These records should be easily accessible in case of labor inspections or worker disputes.

 

Were all OTHER wage payments in line with legal requirements?

wb-26

Ordinary overtime hours

Wb-4--1

Overtime hours performed at night

Wb-4--2

Overtime hours performed on weekly rest days

Wb-4--3

Overtime hours performed on public holidays

wb-4--4

Recommendations

  • Confirm that all overtime hours—regular, night, weekend, and public holiday overtime—are paid at the legally mandated rate. 
  • Employers should use automated time-tracking systems to prevent underpayment of overtime hours. 
  • Time records should be aligned with payroll to ensure proper wage calculations. 
  • Regular internal audits should compare time records with payroll data to detect underpayment. 
  • Third-party labor audits should be conducted to ensure compliance with wage laws Ensuring that workers are properly compensated for all overtime hours, facilities can prevent legal risks, uphold fair labor standards, and maintain a motivated workforce. 
  • Failure to comply with overtime pay laws is a serious violation that requires immediate corrective action.

 

Does the facility pay workers correctly during work stoppages in line with legal requirements?

wb-25

Recommendations

  • Review national labor laws and employment contracts to determine when workers must be compensated during work stoppages. If legally required, ensure full or partial wage payment during stoppages. 
  • Clearly define when and how workers will be compensated if work halts due to facility-related issues. 
  • Communicate policies to all workers through contracts, employee handbooks, and notice boards. 
  • Maintain accurate records of work stoppages and associated payroll records to ensure compliance. If applicable, document reasons for stoppages and payments made to workers. 
  • Explore flexible work arrangements (e.g., training programs, alternative duties) to keep workers engaged. If legally permitted, negotiate partial payments or government-supported wage subsidies to support workers. 
  • Ensuring proper wage payments during work stoppages, the facility can comply with legal requirements, protect worker financial well-being, and maintain a responsible and ethical work environment.

 

Is the facility failing to pay any worker AT LEAST the legal minimum wage for any regular hours worked?

wb-wage-2

Workers under probation

Wb-wag-10x

Workers who are trainees, apprentices or interns

Wb-wag-11x

Part-time workers

Wb-wag-7x

Agency/contract workers

Wb-wag-8x

Other

Wb-wag-91x

Contract workers who are not part of the production process

Wb-wag-9x

Permanent workers

Wb-wage-3

Temporary workers

Wb-wage-4

Casual workers

wb-wage-5

Recommendations

  • Conduct internal payroll audits to verify that all workers, regardless of employment type, receive wages at or above the legal minimum. 
  • Employers should not impose deductions that reduce wages below the legal minimum.
  • All deductions should be transparent, legally permitted, and clearly stated on payslips.
  • Payroll processing should be regularly reviewed for accuracy and compliance. 
  • Workers should receive detailed wage statements clearly indicating hours worked, overtime, deductions, and net pay.

 

Payroll records do not show all the types of social insurance the workers are paid

Wb-wage-1

Payroll records are not consistent with attendance records and other records

wb-wage-94x

None of the above

wb-wage-95x

Recommendations

  • Payroll data should accurately reflect work hours, including overtime and shift differentials. 
  • Time-tracking systems should be integrated with payroll processing to prevent discrepancies. 
  • Supervisors and payroll teams should be trained to report work hours correctly. 
  • Payroll records should clearly list all deductions and employer contributions.
  •  Workers should receive payslips showing social insurance payments for transparency. 
  • Payroll records should be cross-checked with attendance logs, production records, and worker contracts to ensure consistency. 
  • Payroll software should be used to accurately track wages, attendance, and social insurance contributions. 
  • Records should be stored securely and maintained for the legally required period.

 

Do workers have the ability to dispute and correct wage payments in the event of an error?

wb-wage-64

Recommendations

  • Develop a clear, written policy for handling wage disputes. 
  • Ensure workers can report issues to HR or payroll without fear of retaliation. 
  • Set a deadline for wage dispute investigations and corrections (e.g., within one payroll cycle). 
  • Ensure workers receive back pay for any underpaid wages. 
  • Workers should be trained on how to report wage discrepancies. 
  • Post clear instructions in common areas (e.g., break rooms, payroll offices). 
  • Employers should regularly audit payroll records to identify and correct errors proactively. 
  • Workers should receive detailed pay slips explaining their earnings and deductions. 
  • Ensuring workers have a transparent and fair way to dispute wage errors, facilities can 
  • improve compliance, prevent legal risks, and foster a positive working environment.

 

Were withholdings from wages, other than social security, calculated correctly and in line with legal requirements?

wb-wag-47

Recommendations

  • Review national labor laws to confirm which deductions are allowed. 
  • Obtain clear written consent from workers for voluntary deductions. 
  • Ensure tax, pension, and union deductions are calculated correctly. 
  • Provide payslips detailing deductions in a language workers understand. 
  • Regularly review wage deductions for accuracy and legal compliance. 
  • Correct any miscalculations immediately to prevent disputes. 
  • Ensure payroll teams understand legal deduction limits. 
  • Ensuring deductions comply with legal requirements, facilities can protect worker wages, prevent disputes, and maintain legal compliance.

 

Are workers paid their full wages in the legally required manner?

wb-wag-43

Recommendations

  • Follow legal deadlines for wage payments (e.g., weekly, biweekly, or monthly as required). 
  • Establish clear payroll processes to prevent payment delays. 
  • Ensure workers receive their full legally mandated wages, including overtime and benefits. Audit payroll records regularly to confirm compliance. 
  • Issue detailed payslips with a breakdown of earnings, deductions, and overtime. 
  • Educate workers on how their wages are calculated. 
  • Ensuring timely, full, and legally compliant wage payments, facilities can avoid legal risks, improve worker satisfaction, and align with international labor standards.

 

Are workers paid for all work-related activities outside of regular working hours?

wb-7

Recommendations

  • Identify any work-related activities requiring worker participation beyond regular hours. 
  • Ensure these activities are included in payroll records and compensated accordingly. 
  • Ensure that all work-related activities beyond scheduled work hours are recorded and paid. 
  • Workers should receive clear payslips showing any additional compensation. 
  • Perform internal and third-party payroll audits to verify that all compensable activities are properly paid. 
  • Ensuring that all work-related activities outside of regular working hours are properly compensated, employers can maintain fair wage practices, prevent legal risks, and improve worker satisfaction. 
  • Immediate corrective actions should be taken where unpaid labor is identified.

 

Are overtime hours paid at a premium rate of AT LEAST 1.25 times the base rate?

Wb-4--5

Is the facility failing to pay workers correctly for any of these types of regular hours worked at a premium rate, as legally required:

• Regular hours worked at night • Regular hours worked on weekly rest days • Regular hours worked on public holidays? 

Wb-wag-13

Are piece rate workers paid correctly for ordinary hours of work when their piece rate earnings exceed minimum wage?

Wb-wag-14

Is the facility failing to pay workers premium pay as legally required based on:

• worker’s competence (e.g. experience, skills, training) and/or • the nature of the work (e.g. hazard pay)?

 wb-wag-93

Recommendations

  • Review national labor laws and internal payroll systems to confirm compliance with the minimum overtime premium rate. If country-specific laws mandate a higher premium rate, employers must comply with the stricter requirement. 
  • Ensure that all overtime hours are logged accurately and reflected in payroll records. 
  • Workers should receive payslips that clearly show overtime hours and their respective pay rates. 
  • Perform internal and third-party audits to ensure that overtime pay aligns with legal and ethical standards. If discrepancies are found, employers must provide back pay to affected workers. 
  • Ensuring that all overtime hours are compensated at a minimum of 1.25 times the base rate, facilities can promote fair labor practices, avoid legal risks, and maintain a positive working environment. 
  • Failure to comply with overtime pay laws should be corrected promptly to maintain compliance with labor standards and international buyer expectations.

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