New evidence that Digital Wage Systems are a driver of social compliance and fairer wage-setting
Across global supply chains, the shift from cash to digital wage payments is becoming a defining feature of responsible, worker-centered business.
The UN-based Better Than Cash Alliance (BTCA) and the latest data from the Social & Labor Convergence Program (SLCP) offers some of the most compelling evidence yet that digital wage systems can drive stronger social compliance and fairer wage-setting practices.
The joint policy brief published today shows the growing trend in facilities paying wages digitally, and demonstrates an alignment between digital payment adoption and improved compliance outcomes:
Facilities relying on non-digital payments often fail to meet certain wage and benefit requirements – such as timely payment and transfer of social insurance contributions and overtime payments.
Facilities paying wages digitally exhibit more systematic and fair wage-setting and drive broader worker empowerment by supporting financial inclusion and access to financial services. In the Wages and Benefits section of the Converged Assessment Framework (CAF), non-digital-paying facilities had an average of 6.4 legal non-compliances – nearly double the 3.3 observed in digitally paying facilities.
Adoption of digital wage systems is steadily increasing, though gaps remain, particularly among small and medium-sized enterprises.
Responsible digital wage payments help businesses identify risks earlier, benchmark performance more accurately, and build more transparent, and resilient supply chains.
This brief also presents the latest trends from SLCP data and offers practical recommendations from Better Than Cash Alliance for policymakers, brands, and suppliers seeking to use digital wage systems for strengthening social compliance, improving business performance, and supporting decent work and better outcomes for workers, including women.
