T5-Europe The Jus Semper Global Alliance 01/09/16 1 6

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1 Table-T5 Living-Wage-Gap and Equalisation analysis (vis-à-vis the U.S.) for all employed in the manufacturing sector in PPP for private consumption terms (Europe) Beginning with the 2012 living-wage gap assessments, the purchasing power parities (PPPs) used refer to private consumption (i.e., household final consumption expenditure), as opposed to the PPPs for Gross Domestic Product previously applied. The PPP for GDP includes prices for the entire economy and not just for the private consumption of consumer households. This change enables Jus Semper to deliver a more accurate metric of all the indicators that we used in our methodology to assess the wage gaps between actual and equalised wage rates. The PPPs for private consumption have been therefore revised for all years beginning in In 2015, reversing the previous improving trend of 2013, nine economies suffered a growing wage-equalisation gap, four experienced no change and eight recorded a growing Eq-Idx vis-à-vis However, five of the eight economies recording gains are former eastern block economies, with Estonia and Slovakia recording powerful gains of six and five points respectively in their Eq-Idx. Among the other economies, only France and Portugal recorded a slight gain in 2015 from In contrast, Ireland was the worst performer, followed by Belgium with a nine and a four-point loss respectively, and then Greece, the Netherlands, Norway and the UK, all with three-point losses. Germany, Belgium, France, Norway, Austria and Switzerland have wage rate surpluses instead of gaps with U.S. wage rates. Since 2012, all 31 economies in our assessments recorded currency devaluations with most being quite substantial. Currencies devalued on average 17,7% against the U.S. dollar, with the euro losing 13,75% in value. Other European currencies devalued 16,9% on average. As a whole, European economies devalued their currencies 14,9% on average. This typically has a direct effect on the private consumption cost of living (PPP). European economies dropped their PPPs 13,7% on average. Yet, in most cases, the drop in PPPs was not enough to offset the effect of currency devaluations on their Eq indices, for their local currency wage rates did not increase enough to offset the U.S. wage rate growing 5,81%. Indeed, wage rates increased on average only 7,4% in local currency, but they dropped 8,6% in dollar value. As a result, there were more economies increasing their wag gaps than reducing them. Only Estonia was able to increase its dollar wage rate by 5,15%, because its euro wage rate grew almost 22%, thus allowing it to increase its Eq-Idx or reduce its wage gap by six points (from 36 to 42). Among the countries that recorded their best Eq-idx ever in 2015, since 1996 (Estonia, Slovakia and Portugal), only the first two have shown a consistent growth of their Eq-Idx since 2012, despite the recession. Portugal had remained stable until 2015 when it recorded its best Idx. Estonia and Slovakia recorded meaningful wage rate increases in local currency of 22% and 14% respectively whilst Portugal s wage rate only grew 3%. The Czech Republic, France, Hungary and Poland were the next best performers in 2015, by recording their best Idx in 2014 and sustaining it in Finland reached its best Idx in 2012 and has sustained it since then. Lastly, the best performers since 1996 have been Slovakia, Estonia, Norway and Sweden with Eq-Idx gains of 21, 20, 20 and 17 points respectively. Four countries did not gain ground in 2015 vis-à-vis 2012 in their Eq-Idx (Austria, Finland, Germany and Spain). Yet, Austria and Spain dropped one point from their best idx, recorded in The Czech Republic, Germany, France, Finland, Hungary, Poland and the UK recorded no change between 2014 and Among the losers, Belgium, Ireland, the Netherlands, Norway and the UK have lost ground in their Eq-idx both from 2012 and from In particular, Belgium, the Netherlands and Ireland have consistently lost ground since 2012, establishing a downward trend. Norway reached its best Eq-Idx in 2013 and then it lost ground both in 2014 and Austria, Denmark, Greece, Italy, Spain and Sweden, also increased their wage rate gap in 2015 versus The biggest losers since 2012 have been Ireland (9 points), Belgium (4 points) and Greece, the Netherlands, Norway and the UK, all with a three-point loss. The countries farther away from their 1996 position are the UK (-9), Germany (-8) and Greece (-6). But, the worst performers overall by comparing their 2015 Eq-Idx with their best index ever are the UK (-18), Germany and Greece, (both with -10), Ireland (-9) and the Netherlands (-8). Nonetheless, although they have lost ground, Belgium and Germany have consistently recorded indices with surpluses and not gaps, usually above 20% over U.S. wage rates Germany PPP conversion factor (in country currency) 1,722 0,841 0,822 0,907 0,882 0,860 0,850 0,826 0,830 0,837 Exchange rate 1,5049 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,14 $ 0,78 $ 0,78 $ 1,13 $ 1,11 $ 1,27 $ 1,13 $ 1,06 $ 1,10 $ 0,93 2. Equalised PPP nominal wage rate US $ $ 25,72 $ 19,37 $ 21,25 $ 33,08 $ 33,78 $ 41,53 $ 39,19 $ 37,87 $ 40,81 $ 35,01 3. Actual PPP Real wage rate US $ $ 29,02 $ 32,74 $ 35,30 $ 33,38 $ 35,47 $ 37,32 $ 39,24 $ 43,19 $ 44,90 $ 45,69 4. Actual Nominal wage rate US $ $ 33,22 $ 25,41 $ 27,42 $ 37,67 $ 39,31 $ 47,27 $ 44,25 $ 45,89 $ 49,47 $ 42,42 Compensation Deficit in US $ (2 minus 4) $ (7,50) $ (6,04) $ (6,17) $ (4,59) $ (5,53) $ (5,74) $ (5,06) $ (8,02) $ (8,66) $ (7,41) Wage Equalisation index (4 2 or 3 1) 1,29 1,31 1,29 1,14 1,16 1,14 1,13 1,21 1,21 1,21 United Kingdom PPP conversion factor (in country currency) 0,657 0,654 0,650 0,638 0,647 0,681 0,751 0,773 0,801 0,800 Exchange rate 0,6407 0,6598 0,666 0,5456 0,5425 0,5392 0,6472 0,6308 0,6077 0,6545 PPP conversion factor (in U.S. dollars) $ 1,03 $ 0,99 $ 0,98 $ 1,17 $ 1,19 $ 1,26 $ 1,16 $ 1,23 $ 1,32 $ 1,22 2. Equalised PPP nominal wage rate US $ $ 23,04 $ 24,74 $ 26,72 $ 34,27 $ 36,35 $ 41,41 $ 40,32 $ 43,66 $ 48,84 $ 46,09 3. Actual PPP Real wage rate US $ $ 17,34 $ 20,85 $ 22,56 $ 24,35 $ 26,13 $ 26,84 $ 24,99 $ 25,20 $ 25,03 $ 25,73 4. Actual Nominal wage rate US $ $ 17,78 $ 20,67 $ 22,03 $ 28,47 $ 31,17 $ 33,91 $ 28,99 $ 30,87 $ 33,01 $ 31,44 Compensation Deficit in US $ (2 minus 4) $ 5,26 $ 4,07 $ 4,69 $ 5,80 $ 5,18 $ 7,50 $ 11,33 $ 12,79 $ 15,83 $ 14,65 Wage Equalisation index (4 2 or 3 1) 0,77 0,84 0,82 0,83 0,86 0,82 0,72 0,71 0,68 0,68 T5-Europe The Jus Semper Global Alliance 01/09/16 1 6

2 France PPP conversion factor (in country currency) 6,624 0,947 0,914 0,953 0,932 0,920 0,894 0,884 0,881 0,885 Exchange rate 5,1158 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,29 $ 0,87 $ 0,86 $ 1,19 $ 1,17 $ 1,35 $ 1,19 $ 1,14 $ 1,17 $ 0,98 2. Equalised PPP nominal wage rate US $ $ 29,10 $ 21,81 $ 23,65 $ 34,74 $ 35,67 $ 44,41 $ 41,21 $ 40,50 $ 43,30 $ 36,99 3. Actual PPP Real wage rate US $ $ 21,48 $ 24,45 $ 26,66 $ 27,09 $ 27,92 $ 30,82 $ 32,92 $ 35,79 $ 37,79 $ 38,32 4. Actual Nominal wage rate US $ $ 27,82 $ 21,37 $ 23,04 $ 32,11 $ 32,67 $ 41,76 $ 39,04 $ 40,67 $ 44,18 $ 37,59 Compensation Deficit in US $ (2 minus 4) $ 1,28 $ 0,44 $ 0,61 $ 2,63 $ 3,00 $ 2,65 $ 2,17 $ (0,17) $ (0,88) $ (0,60) Wage Equalisation index (4 2 or 3 1) 0,96 0,98 0,97 0,92 0,92 0,94 0,95 1,00 1,02 1,02 Italy PPP conversion factor (in country currency) 1712,166 0,872 0,907 0,909 0,894 0,851 0,822 0,838 0,842 0,846 Exchange rate 1542,760 1,0832 1,0578 0,8040 0,796 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,11 $ 0,80 $ 0,86 $ 1,13 $ 1,12 $ 1,25 $ 1,09 $ 1,08 $ 1,12 $ 0,94 2. Equalised PPP nominal wage rate US $ $ 24,94 $ 20,09 $ 23,47 $ 33,13 $ 34,25 $ 41,09 $ 37,88 $ 38,42 $ 41,39 $ 35,39 3. Actual PPP Real wage rate US $ $ 18,92 $ 20,67 $ 21,60 $ 23,94 $ 25,36 $ 27,86 $ 31,02 $ 32,20 $ 33,44 $ 33,54 4. Actual Nominal wage rate US $ $ 21,00 $ 16,64 $ 18,53 $ 27,06 $ 28,49 $ 34,93 $ 33,81 $ 34,71 $ 37,37 $ 31,48 Compensation Deficit in US $ (2 minus 4) $ 3,94 $ 3,45 $ 4,94 $ 6,07 $ 5,76 $ 6,16 $ 4,07 $ 3,71 $ 4,02 $ 3,91 Wage Equalisation index (4 2 or 3 1) 0,84 0,83 0,79 0,82 0,83 0,85 0,89 0,90 0,90 0,89 Spain PPP conversion factor (in country currency) 131,052 0,784 0,772 0,788 0,789 0,790 0,790 0,777 0,755 0,756 Exchange rate 126,68 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,03 $ 0,72 $ 0,73 $ 0,98 $ 0,99 $ 1,16 $ 1,05 $ 1,00 $ 1,00 $ 0,84 2. Equalised PPP nominal wage rate US $ $ 23,25 $ 18,07 $ 19,97 $ 28,72 $ 30,21 $ 38,12 $ 36,39 $ 35,63 $ 37,12 $ 31,64 3. Actual PPP Real wage rate US $ $ 14,96 $ 17,13 $ 18,90 $ 20,19 $ 21,96 $ 23,73 $ 25,41 $ 26,86 $ 28,13 $ 28,19 4. Actual Nominal wage rate US $ $ 15,48 $ 12,40 $ 13,79 $ 19,79 $ 21,77 $ 27,60 $ 26,61 $ 26,85 $ 28,19 $ 23,65 Compensation Deficit in US $ (2 minus 4) $ 7,77 $ 5,67 $ 6,18 $ 8,93 $ 8,44 $ 10,52 $ 9,78 $ 8,78 $ 8,93 $ 7,99 Wage Equalisation index (4 2 or 3 1) 0,67 0,69 0,69 0,69 0,72 0,72 0,73 0,75 0,76 0,75 Netherlands** PPP conversion factor (in country currency) 2,009 0,895 0,909 0,917 0,893 0,865 0,876 0,881 0,896 0,915 Exchange rate 1,9525 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,03 $ 0,83 $ 0,86 $ 1,14 $ 1,12 $ 1,27 $ 1,16 $ 1,13 $ 1,19 $ 1,02 2. Equalised PPP nominal wage rate US $ $ 23,71 $ 20,61 $ 23,51 $ 33,43 $ 34,19 $ 41,75 $ 40,36 $ 40,38 $ 44,02 $ 38,28 3. Actual PPP Real wage rate US $ $ 21,82 $ 25,48 $ 27,50 $ 28,89 $ 30,60 $ 33,65 $ 33,97 $ 34,87 $ 35,51 $ 35,98 4. Actual Nominal wage rate US $ $ 22,45 $ 21,04 $ 23,63 $ 32,95 $ 34,32 $ 42,86 $ 39,45 $ 39,51 $ 42,21 $ 36,53 Compensation Deficit in US $ (2 minus 4) $ 1,26 $ (0,43) $ (0,12) $ 0,48 $ (0,13) $ (1,11) $ 0,91 $ 0,87 $ 1,81 $ 1,75 Wage Equalisation index (4 2 or 3 1) 0,95 1,02 1,01 0,99 1,00 1,03 0,98 0,98 0,96 0,95 Belgium PPP conversion factor (in country currency) 37,647 0,912 0,897 0,925 0,924 0,917 0,903 0,888 0,889 0,899 Exchange rate 30,9700 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,22 $ 0,84 $ 0,85 $ 1,15 $ 1,16 $ 1,35 $ 1,20 $ 1,14 $ 1,18 $ 1,00 2. Equalised PPP nominal wage rate US $ $ 27,31 $ 21,02 $ 23,19 $ 33,72 $ 35,39 $ 44,25 $ 41,63 $ 40,70 $ 43,71 $ 37,58 3. Actual PPP Real wage rate US $ $ 26,91 $ 30,97 $ 32,59 $ 34,66 $ 36,54 $ 39,70 $ 42,28 $ 45,69 $ 47,12 $ 46,72 4. Actual Nominal wage rate US $ $ 32,71 $ 26,08 $ 27,63 $ 39,88 $ 42,43 $ 53,60 $ 50,66 $ 52,17 $ 55,60 $ 46,56 Compensation Deficit in US $ (2 minus 4) $ (5,40) $ (5,06) $ (4,44) $ (6,16) $ (7,04) $ (9,35) $ (9,03) $ (11,47) $ (11,89) $ (8,98) Wage Equalisation index (4 2 or 3 1) 1,20 1,24 1,19 1,18 1,20 1,21 1,22 1,28 1,27 1,24 T5-Europe The Jus Semper Global Alliance 01/09/16 2 6

3 Sweden PPP conversion factor (in country currency) 9,994 9,637 9,854 9,601 9,410 9,017 9,269 9,159 9,305 9,518 Exchange rate 6,7082 9,1735 9,7233 7,3480 7,3718 6,5846 7,2053 6,7721 6,8608 8,4348 PPP conversion factor (in U.S. dollars) $ 1,49 $ 1,05 $ 1,01 $ 1,31 $ 1,28 $ 1,37 $ 1,29 $ 1,35 $ 1,36 $ 1,13 2. Equalised PPP nominal wage rate US $ $ 33,48 $ 26,22 $ 27,73 $ 38,30 $ 38,91 $ 44,89 $ 44,70 $ 48,20 $ 50,24 $ 42,55 3. Actual PPP Real wage rate US $ $ 18,22 $ 22,27 $ 24,25 $ 26,57 $ 28,63 $ 32,42 $ 33,18 $ 35,62 $ 36,98 $ 36,93 4. Actual Nominal wage rate US $ $ 27,15 $ 23,40 $ 24,58 $ 34,72 $ 36,55 $ 44,39 $ 42,69 $ 48,17 $ 50,15 $ 41,68 Compensation Deficit in US $ (2 minus 4) $ 6,33 $ 2,82 $ 3,15 $ 3,58 $ 2,36 $ 0,50 $ 2,01 $ 0,03 $ 0,09 $ 0,87 Wage Equalisation index (4 2 or 3 1) 0,81 0,89 0,89 0,91 0,94 0,99 0,95 1,00 1,00 0,98 Switzerland PPP conversion factor (in country currency) 2,002 1,986 1,902 1,884 1,817 1,695 1,659 1,576 1,479 NA Exchange rate 1,2361 1,6904 1,5567 1,2428 1,2532 1,0816 1,0432 0,9377 0,9162 NA PPP conversion factor (in U.S. dollars) $ 1,62 $ 1,17 $ 1,22 $ 1,52 $ 1,45 $ 1,57 $ 1,59 $ 1,68 $ 1,61 NA 2. Equalised PPP nominal wage rate US $ $ 36,40 $ 29,32 $ 33,43 $ 44,43 $ 44,20 $ 51,37 $ 55,27 $ 59,91 $ 59,81 NA 3. Actual PPP Real wage rate US $ $ 21,93 $ 22,91 $ 25,45 $ 26,00 $ 28,21 $ 31,38 $ 32,14 $ 36,46 $ 40,09 NA 4. Actual Nominal wage rate US $ $ 35,52 $ 26,92 $ 31,10 $ 39,41 $ 40,91 $ 49,17 $ 51,12 $ 61,28 $ 64,73 $ 0,00 Compensation Deficit in US $ (2 minus 4) $ 0,88 $ 2,40 $ 2,33 $ 5,02 $ 3,29 $ 2,20 $ 4,15 $ (1,37) $ (4,92) NA Wage Equalisation index (4 2 or 3 1) 0,98 0,92 0,93 0,89 0,93 0,96 0,92 1,02 1,08 NA Norway** PPP conversion factor (in country currency) 9,626 9,992 10,031 9,807 9,654 9,604 9,777 9,708 10,012 10,302 Exchange rate 7,0857 8,8131 7,9839 6,7399 6,4095 5,6365 6,0451 5,8181 6,3017 8,0642 PPP conversion factor (in U.S. dollars) $ 1,36 $ 1,13 $ 1,26 $ 1,46 $ 1,51 $ 1,70 $ 1,62 $ 1,67 $ 1,59 $ 1,28 2. Equalised PPP nominal wage rate US $ $ 31,30 $ 28,30 $ 34,37 $ 42,65 $ 45,91 $ 55,85 $ 56,20 $ 59,47 $ 58,85 $ 48,18 3. Actual PPP Real wage rate US $ $ 19,01 $ 21,61 $ 24,10 $ 27,04 $ 29,59 $ 33,66 $ 35,56 $ 37,76 $ 39,58 $ 38,88 4. Actual Nominal wage rate US $ $ 25,83 $ 24,50 $ 30,28 $ 39,34 $ 44,57 $ 57,35 $ 57,51 $ 63,01 $ 62,88 $ 49,67 Compensation Deficit in US $ (2 minus 4) $ 5,47 $ 3,80 $ 4,09 $ 3,31 $ 1,34 $ (1,50) $ (1,31) $ (3,54) $ (4,03) $ (1,49) Wage Equalisation index (4 2 or 3 1) 0,83 0,87 0,88 0,92 0,97 1,03 1,02 1,06 1,07 1,03 Austria PPP conversion factor (in country currency) 13,083 0,911 0,914 0,895 0,875 0,873 0,858 0,863 0,866 0,883 Exchange rate 10,5890 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,24 $ 0,84 $ 0,86 $ 1,11 $ 1,10 $ 1,29 $ 1,14 $ 1,11 $ 1,15 $ 0,98 2. Equalised PPP nominal wage rate US $ $ 27,76 $ 20,99 $ 23,64 $ 32,63 $ 33,50 $ 42,16 $ 39,52 $ 39,57 $ 42,55 $ 36,92 3. Actual PPP Real wage rate US $ $ 22,76 $ 26,07 $ 26,95 $ 27,95 $ 30,56 $ 33,15 $ 35,28 $ 37,74 $ 39,79 $ 40,03 4. Actual Nominal wage rate US $ $ 28,12 $ 21,92 $ 23,28 $ 31,12 $ 33,59 $ 42,63 $ 40,12 $ 41,90 $ 45,71 $ 39,19 Compensation Deficit in US $ (2 minus 4) $ (0,36) $ (0,93) $ 0,36 $ 1,51 $ (0,09) $ (0,47) $ (0,60) $ (2,33) $ (3,16) $ (2,27) Wage Equalisation index (4 2 or 3 1) 1,01 1,04 0,98 0,95 1,00 1,01 1,02 1,06 1,07 1,06 Denmark** PPP conversion factor (in country currency) 8,434 8,493 8,505 8,994 8,874 8,653 8,571 8,556 8,487 8,564 Exchange rate 6,6092 8,0953 7,8862 5,9891 5,9422 5,0885 5,6265 5,7922 5,6125 6,7279 PPP conversion factor (in U.S. dollars) $ 1,28 $ 1,05 $ 1,08 $ 1,50 $ 1,49 $ 1,70 $ 1,52 $ 1,48 $ 1,51 $ 1,27 2. Equalised PPP nominal wage rate US $ $ 29,40 $ 26,19 $ 29,51 $ 44,02 $ 45,52 $ 55,74 $ 52,93 $ 52,65 $ 56,01 $ 48,00 3. Actual PPP Real wage rate US $ $ 18,59 $ 21,20 $ 23,57 $ 23,75 $ 25,58 $ 29,17 $ 31,84 $ 33,37 $ 34,68 $ 34,91 4. Actual Nominal wage rate US $ $ 23,72 $ 22,24 $ 25,42 $ 35,66 $ 38,20 $ 49,61 $ 48,50 $ 49,29 $ 52,45 $ 44,44 Compensation Deficit in US $ (2 minus 4) $ 5,68 $ 3,95 $ 4,09 $ 8,36 $ 7,32 $ 6,13 $ 4,43 $ 3,36 $ 3,56 $ 3,56 Wage Equalisation index (4 2 or 3 1) 0,81 0,85 0,86 0,81 0,84 0,89 0,92 0,94 0,94 0,93 T5-Europe The Jus Semper Global Alliance 01/09/16 3 6

4 Finland PPP conversion factor (in country currency) 6,497 1,081 1,095 1,073 1,053 1,003 0,988 0,996 1,001 1,004 Exchange rate 4,5936 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,41 $ 1,00 $ 1,04 $ 1,33 $ 1,32 $ 1,48 $ 1,31 $ 1,28 $ 1,33 $ 1,11 2. Equalised PPP nominal wage rate US $ $ 31,78 $ 24,91 $ 28,32 $ 39,11 $ 40,33 $ 48,40 $ 45,55 $ 45,67 $ 49,18 $ 41,99 3. Actual PPP Real wage rate US $ $ 17,68 $ 19,87 $ 21,76 $ 24,29 $ 26,56 $ 29,54 $ 30,79 $ 32,79 $ 33,92 $ 34,54 4. Actual Nominal wage rate US $ $ 25,01 $ 19,83 $ 22,52 $ 32,41 $ 35,15 $ 43,62 $ 40,35 $ 42,01 $ 45,03 $ 38,46 Compensation Deficit in US $ (2 minus 4) $ 6,77 $ 5,08 $ 5,80 $ 6,70 $ 5,18 $ 4,78 $ 5,20 $ 3,66 $ 4,15 $ 3,53 Wage Equalisation index (4 2 or 3 1) 0,79 0,80 0,80 0,83 0,87 0,90 0,89 0,92 0,92 0,92 Ireland PPP conversion factor (in country currency) 0,715 1,027 1,106 1,091 1,069 1,077 0,959 0,958 1,000 1,028 Exchange rate 0,6248 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 1,14 $ 0,95 $ 1,05 $ 1,36 $ 1,34 $ 1,59 $ 1,27 $ 1,23 $ 1,33 $ 1,14 2. Equalised PPP nominal wage rate US $ $ 25,70 $ 23,67 $ 28,61 $ 39,78 $ 40,91 $ 52,01 $ 44,19 $ 43,90 $ 49,17 $ 42,99 3. Actual PPP Real wage rate US $ $ 15,42 $ 17,29 $ 18,74 $ 20,84 $ 23,53 $ 26,36 $ 31,98 $ 33,06 $ 32,68 $ 31,59 4. Actual Nominal wage rate US $ $ 17,64 $ 16,40 $ 19,60 $ 28,28 $ 31,58 $ 41,82 $ 40,66 $ 40,72 $ 43,38 $ 36,02 Compensation Deficit in US $ (2 minus 4) $ 8,06 $ 7,27 $ 9,01 $ 11,50 $ 9,33 $ 10,19 $ 3,53 $ 3,18 $ 5,79 $ 6,97 Wage Equalisation index (4 2 or 3 1) 0,69 0,69 0,69 0,71 0,77 0,80 0,92 0,93 0,88 0,84 Portugal PPP conversion factor (in country currency) 141,552 0,742 0,763 0,757 0,729 0,730 0,710 0,703 0,669 0,679 Exchange rate 154,2800 1,0832 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor, GDP (in U.S. dollars) $ 0,92 $ 0,69 $ 0,72 $ 0,94 $ 0,92 $ 1,07 $ 0,94 $ 0,90 $ 0,89 $ 0,75 2. Equalised PPP nominal wage rate US $ $ 20,62 $ 17,10 $ 19,73 $ 27,60 $ 27,92 $ 35,24 $ 32,71 $ 32,23 $ 32,88 $ 28,40 3. Actual PPP Real wage rate US $ $ 7,77 $ 8,67 $ 9,22 $ 9,77 $ 10,83 $ 11,61 $ 12,75 $ 13,70 $ 13,98 $ 14,63 4. Actual Nominal wage rate US $ $ 7,13 $ 5,94 $ 6,65 $ 9,20 $ 9,92 $ 12,48 $ 12,00 $ 12,39 $ 12,41 $ 11,02 Compensation Deficit in US $ (2 minus 4) $ 13,49 $ 11,16 $ 13,08 $ 18,40 $ 18,00 $ 22,76 $ 20,71 $ 19,84 $ 20,47 $ 17,38 Wage Equalisation index (4 2 or 3 1) 0,35 0,35 0,34 0,33 0,36 0,35 0,37 0,38 0,38 0,39 Greece PPP conversion factor (in country currency) 228, ,361 0,709 0,759 0,764 0,762 0,767 0,754 0,699 0,700 Exchange rate 240, ,4000 1,0578 0,8040 0,7960 0,6791 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 0,95 $ 0,70 $ 0,67 $ 0,94 $ 0,96 $ 1,12 $ 1,02 $ 0,97 $ 0,93 $ 0,78 2. Equalised PPP nominal wage rate US $ $ 21,34 $ 17,44 $ 18,33 $ 27,68 $ 29,27 $ 36,78 $ 35,35 $ 34,55 $ 34,35 $ 29,27 3. Actual PPP Real wage rate US $ $ 13,28 $ 14,22 $ 16,56 $ 16,81 $ 17,27 $ 20,52 $ 21,95 $ 20,01 $ 20,71 $ 19,95 4. Actual Nominal wage rate US $ $ 12,61 $ 9,94 $ 11,09 $ 15,87 $ 16,58 $ 23,02 $ 22,33 $ 19,40 $ 19,21 $ 15,48 Compensation Deficit in US $ (2 minus 4) $ 8,73 $ 7,50 $ 7,24 $ 11,81 $ 12,69 $ 13,76 $ 13,02 $ 15,15 $ 15,14 $ 13,79 Wage Equalisation index (4 2 or 3 1) 0,59 0,57 0,61 0,57 0,57 0,63 0,63 0,56 0,56 0,53 Poland** PPP conversion factor (in country currency) 1,692 2,075 2,085 2,088 2,088 2,021 1,959 1,941 1,912 1,925 Exchange rate 3,2800 4,3500 4,0800 3,6576 3,1032 2,4092 3,0153 3,2565 3,1545 3,7695 PPP conversion factor (in U.S. dollars) $ 0,52 $ 0,48 $ 0,51 $ 0,57 $ 0,67 $ 0,84 $ 0,65 $ 0,60 $ 0,61 $ 0,51 2. Equalised PPP nominal wage rate US $ $ 11,89 $ 11,91 $ 13,98 $ 16,73 $ 20,51 $ 27,50 $ 22,58 $ 21,24 $ 22,45 $ 19,26 3. Actual PPP Real wage rate US $ $ 6,38 $ 7,38 $ 8,20 $ 8,60 $ 9,39 $ 11,69 $ 13,02 $ 14,55 $ 16,22 $ 16,70 4. Actual Nominal wage rate US $ $ 3,29 $ 3,52 $ 4,19 $ 4,91 $ 6,32 $ 9,81 $ 8,46 $ 8,67 $ 9,83 $ 8,53 Compensation Deficit in US $ (2 minus 4) $ 8,60 $ 8,39 $ 9,79 $ 11,82 $ 14,19 $ 17,69 $ 14,12 $ 12,57 $ 12,62 $ 10,73 Wage Equalisation index (4 2 or 3 1) 0,28 0,30 0,30 0,29 0,31 0,36 0,37 0,41 0,44 0,44 T5-Europe The Jus Semper Global Alliance 01/09/16 4 6

5 Czech Rep. PPP conversion factor (in country currency) 13,144 15,304 15,528 15,311 14,920 16,011 15,317 14,859 14,352 14,487 Exchange rate 27, , , , , , , , , ,5988 PPP conversion factor (in U.S. dollars) $ 0,48 $ 0,40 $ 0,47 $ 0,60 $ 0,66 $ 0,94 $ 0,80 $ 0,76 $ 0,69 $ 0,59 2. Equalised PPP nominal wage rate US $ $ 10,88 $ 9,90 $ 12,98 $ 17,46 $ 20,13 $ 30,74 $ 27,87 $ 27,05 $ 25,61 $ 22,21 3. Actual PPP Real wage rate US $ $ 6,98 $ 8,57 $ 9,72 $ 11,03 $ 12,36 $ 13,04 $ 14,24 $ 15,64 $ 16,98 $ 17,47 4. Actual Nominal wage rate US $ $ 3,38 $ 3,40 $ 4,61 $ 6,57 $ 8,16 $ 12,23 $ 11,42 $ 11,87 $ 11,74 $ 10,29 Compensation Deficit in US $ (2 minus 4) $ 7,50 $ 6,50 $ 8,37 $ 10,89 $ 11,97 $ 18,51 $ 16,45 $ 15,18 $ 13,87 $ 11,92 Wage Equalisation index (4 2 or 3 1) 0,31 0,34 0,36 0,38 0,41 0,40 0,41 0,44 0,46 0,46 Slovakia PPP conversion factor (in country currency) 13,662 16,909 16,881 19,042 18,544 18,143 0,571 0,576 0,555 0,559 Exchange rate 30,654 46,035 45,327 32,257 29,697 21,361 0,7541 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 0,45 $ 0,37 $ 0,37 $ 0,59 $ 0,62 $ 0,85 $ 0,76 $ 0,74 $ 0,74 $ 0,62 2. Equalised PPP nominal wage rate US $ $ 10,01 $ 9,17 $ 10,19 $ 17,30 $ 19,03 $ 27,84 $ 26,29 $ 26,41 $ 27,27 $ 23,36 3. Actual PPP Real wage rate US $ $ 6,13 $ 7,08 $ 8,70 $ 8,81 $ 10,51 $ 12,62 $ 14,17 $ 15,42 $ 17,55 $ 18,18 4. Actual Nominal wage rate US $ $ 2,73 $ 2,60 $ 3,24 $ 5,20 $ 6,56 $ 10,72 $ 10,72 $ 11,43 $ 12,92 $ 11,26 Compensation Deficit in US $ (2 minus 4) $ 7,28 $ 6,57 $ 6,95 $ 12,10 $ 12,47 $ 17,12 $ 15,57 $ 14,98 $ 14,35 $ 12,10 Wage Equalisation index (4 2 or 3 1) 0,27 0,28 0,32 0,30 0,34 0,39 0,41 0,43 0,47 0,48 Hungary PPP conversion factor (in country currency) 74, , , , , , , , , ,896 Exchange rate 152, , , , , , , , , ,333 PPP conversion factor (in U.S. dollars) $ 0,49 $ 0,41 $ 0,48 $ 0,67 $ 0,65 $ 0,84 $ 0,68 $ 0,63 $ 0,62 $ 0,53 2. Equalised PPP nominal wage rate US $ $ 11,01 $ 10,12 $ 13,08 $ 19,55 $ 19,93 $ 27,62 $ 23,54 $ 22,58 $ 23,14 $ 20,10 3. Actual PPP Real wage rate US $ $ 6,35 $ 7,30 $ 8,74 $ 9,25 $ 10,48 $ 11,59 $ 12,39 $ 13,89 $ 15,19 $ 15,48 4. Actual Nominal wage rate US $ $ 3,11 $ 2,96 $ 4,18 $ 6,17 $ 6,85 $ 9,77 $ 8,39 $ 8,80 $ 9,49 $ 8,25 Compensation Deficit in US $ (2 minus 4) $ 7,90 $ 7,16 $ 8,90 $ 13,38 $ 13,08 $ 17,85 $ 15,15 $ 13,78 $ 13,65 $ 11,85 Wage Equalisation index (4 2 or 3 1) 0,28 0,29 0,32 0,32 0,34 0,35 0,36 0,39 0,41 0,41 Estonia PPP conversion factor (in country currency) 8,012 8,410 8,549 8,110 9,965 9,503 0,630 0,619 0,631 Exchange rate 16,969 16,612 12,596 12,466 10,694 11,807 0,7777 0,7537 0,9017 PPP conversion factor (in U.S. dollars) $ 0,47 $ 0,51 $ 0,68 $ 0,65 $ 0,93 $ 0,80 $ 0,81 $ 0,82 $ 0,70 2. Equalised PPP nominal wage rate US $ $ 11,79 $ 13,85 $ 19,89 $ 19,83 $ 30,55 $ 27,97 $ 28,86 $ 30,41 $ 26,37 3. Actual PPP Real wage rate US $ $ 5,40 $ 6,14 $ 7,16 $ 10,11 $ 11,33 $ 11,74 $ 12,94 $ 15,12 $ 15,76 4. Actual Nominal wage rate US $ $ 2,55 $ 3,11 $ 4,86 $ 6,58 $ 10,56 $ 9,45 $ 10,48 $ 12,41 $ 11,02 Compensation Deficit in US $ (2 minus 4) $ 9,24 $ 10,74 $ 15,03 $ 13,25 $ 19,99 $ 18,52 $ 18,38 $ 18,00 $ 15,35 Wage Equalisation index (4 2 or 3 1) 0,22 0,22 0,24 0,33 0,35 0,34 0,36 0,41 0,42 ** 1996 "Nominal compensation" figure for Netherlands, Norway, Denmark and Poland is actually for T5-Europe The Jus Semper Global Alliance 01/09/16 5 6

6 *Definitions: PPPs stands for Purchasing-Power Parities, which reflect the currency units in a given currency that are required to buy the same goods and services that can be purchased in the base country with one currency unit. This analysis uses the U.S. and the U.S. dollar as the benchmark and assumes that the U.S. wage is a living wage. The hourly manufacturing wage rate is the "hourly compensation cost" as defined by the U.S. Department of Labour, Bureau of Labour Statistics: This includes (1) hourly direct pay and (2) employer social insurance expenditures and other labour taxes. Hourly direct pay includes all payments made directly to the worker, before payroll deductions of any kind, consisting of pay for time worked and other direct pay. Social insurance expenditures and other labour taxes refers to the value of social contributions incurred by employers in order to secure entitlement to social benefits for their employees. PPP conversion factor, (private consumption) in country currency express the number of country currency units required to buy the same goods and services a U.S. dollar can buy in the U.S. Exchange rate is nominal exchange rate. PPP conversion factor, private consumption in U.S. dollars expresses the U.S. dollar units required in a given country to buy the same goods and services a U.S. dollar can buy in the U.S. If the PPP is less than 1, a U.S. dollar can buy more in the country in question because the cost of living is lower, and viceversa. The PPP for private consumption, expressed in national currency, reflects the exchange rate in comparison with the market exchange rate, which does not reflect the ratio of prices. Equalised PPP nominal wage rate is the hourly U.S. dollar nominal rate required to equally compensate a worker in a country, in purchasing power terms, for equal work rendered, as the equivalent U.S. worker is compensated. This analysis assumes the U.S. wage to be a living-wage. A living wage is a human right in accordance with Article 23 of the UN Universal Declaration of Human Rights. ILO's Convention 100 of "equal pay for equal work", for men and women is hereby applied in a global context. Actual PPP Real wage rate is the hourly wage paid in a given country in purchasing power terms. Actual Nominal wage rate is the nominal hourly wage paid in a given country. Compensation deficit expresses the wage gap between the hourly nominal wage rate paid (4) and the equalised PPP hourly rate that should be paid for equal work (2). Compensation equalisation index expresses the ratio of actual nominal pay to equalised PPP hourly pay (4 between 2): or the ratio of actual real pay (3) to the hourly nominal pay benchmark (1) (3 between 1). Note: Variations in previous years are due to revisions made by the sources, including the World Bank's new 2011 PPP benchmarks, which replaced the previous 2005 benchmarks. Since 2010 the international comparison of hourly compensation costs (hourly wage rates) between the U.S. and selected developed and "emerging" markets refers to all employed in the manufacturing sector and no longer will be available for production workers only. Production-line wage rates are on average 20% below wage rates for all employed in manufacturing, including production workers, for the period, for all countries included in the assessment. For further reference see wage-gap assessment of trends and differences between production-line and all employed in manufacturing in compensation cost terms here: < Sources: The Jus Semper Global Alliance analysis using the sources below. (Sources with X indicate that some of their data is directly incorporated in the table:) Database of World Bank's World Development Indicators, X U.S. Bureau of Labor Statistics, August 2013 and The Conference Board, International Labor Comparisons program, May Purchasing Power Parities and Real Expenditures of World Economies. Summary of Results and Findings of the 2011 International Comparison Program. World Bank Purchasing Power parities Measurement and Uses by Paul Schreyer and Francette Koechlin, OECD Statistical briefs, March T5-Europe The Jus Semper Global Alliance 01/09/16 6 6