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Fair Wear’s Labour Minute Costing Calculators allow brands and factories to ring-fence the labour cost based on a transparent methodology for costing/pricing of goods.
When wages go up, e.g. because of a rise in the legal minimum wage, or application of a CBA wage level or a living wage benchmark, the tool allows you to calculate the impact such increases have on the manufacturing (CMT or FOB) price of garments. The calculator enables suppliers and buyers to determine the cost of one minute of labour in a factory, taking into account factory-specific variables such as workforce composition, bonuses and insurance and actual overtime hours. This tool is an important step forward in ensuring brands’ purchasing practices related to pricing (CMT and FOB) support living wages.
Interested in using our Labour Minute and Product Costing Calculators? Before you get started, consult this document for complete background, instructions and step-by-step guidance on how to use the tools.
Watch this space for more calculators currently in development.
Fair Wear’s labour minute value and product costing calculators have been developed as part of the Strategic Partnership for Garment Supply Chain Transformation and with the financial support of ASN Bank.