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Wage Management System of H&M offers better pay package

In 2018, the difference in take-home salary amongst the workers under Wage Management System (WMS) and other workers ranged from 2 percent in Turkey to 11 percent in Indonesia. These increases were not driven by a difference in overtime hours. In 2017 the difference ranged from 8 percent higher take-home wages in Bangladesh to 29 percent in Indonesia.

H&M introduced the improved Wage Management System (WMS) in 2013 in factories where it sources apparel items from and it implemented the "fair wage method" in 20 garment units in Bangladesh.

Around 930,000 garment workers work in factories that are either implementing improved WMS or have democratically elected worker representation -- or, as in most cases, both.

The WMS helped factories become fairer and more transparent in the way they work with individual wage setting.

 

 
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