How much will it cost brands to pay for the Severance Guarantee Fund and the shortfall in wages and bene ts? Brands will be asked to pay a premium of 1.5% of annual FOB, with a special additional 1.5% fee assessed in the rst year to account for the administrative set up and the devastating impacts of the pandemic and climate disruption. "The rst year" is de ned as the rst year after the brand signs on to the Fund. Thus, even if a brand signs on after the initial year of the programme, the additional 1.5% fee will still be assessed in the rst year of the brand's participation in the Fund. The 1.5% fee can be reduced if a brand sources from countries that establish credible and effective social protection programs covering unemployment and/or severance bene ts, or if its suppliers sign on and contribute to the Fund. If all of a brand's suppliers sign on, or if the brand is exclusively sourcing from countries that have fully functioning social protection programmes, its fee will go to zero.