Nike Factory Wages Fall Below Basic Living Expenses
Workers at Nike suppliers in Vietnam and Indonesia report low pay, with many forced to take second jobs to cover living costs.
Updated on Oct. 30, 2026 in Employment
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Factory workers producing Nike goods in Vietnam and Indonesia report monthly wages as low as $150 to $236, failing to cover basic living expenses. Many of these employees now rely on second jobs or credit to manage daily costs.
Why it matters
The gap between manufacturing wages and the cost of living forces hundreds of thousands of workers to seek supplemental income. This tension persists even as Nike undergoes a major $2.5 billion corporate restructuring plan.
Low-end monthly wages for Nike factory workers reach $150 in Indonesia and $236 in Vietnam, with some employees earning less than the $205 retail cost of Air Jordans. Approximately 70 percent of workers in one surveyed group report holding second jobs to bridge the income gap.
The players
Nike
A global footwear and apparel company currently managing 712 contract factories while executing a $2.5 billion cost-savings restructuring plan.
The details
Workers at Nike contract factories in Vietnam and Indonesia supplement insufficient primary wages by collecting recyclables, selling food, or cleaning homes. Many rely on personal credit to finance basic needs like housing and healthcare when factory pay fails to suffice. This financial strain continues for the 780,000 workers employed across the two nations despite the company having made a corporate commitment to living wages in 2018.
Timeline
The 1990s saw initial sweatshop scandals emerge within the supply chain.
Nike issued a corporate responsibility report regarding living wages in 2018.
An investigation into factory wages was published in October 2026.
Money Landscape
This report highlights a recurring issue in global manufacturing where retail price points for luxury consumer goods often dwarf the monthly wages of the workers producing them. It illustrates the ongoing challenge of fulfilling corporate living wage pledges in a cost-cutting environment.
The disparity between manufacturing wages and product retail prices underlines the significant overhead costs inherent in global apparel production. Households managing personal budgets should review company sustainability disclosures when evaluating their own consumer purchasing decisions.
The takeaway
The gap between Nike factory wages and retail product prices forces many employees into secondary labor to survive. Investors and consumers should monitor whether the current $2.5 billion restructuring plan impacts the company’s 2018 commitment to ensuring workers earn a living wage.
Further reading
Explore broader trends in global labor conditions and wage standards in the Employment section.
Source note: This article includes information reported by Mail Online.
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