In addition to the Fairtrade price, is the additional sum of money, called the Fairtrade Premium. This money goes into a communal fund for workers and farmers to use to improve their social, economic and environmental conditions.

The use of this additional income is decided upon democratically by producers within the farmers' organization, or by workers on a plantation. The Premium is invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income.
As many projects funded by the Premium are communal, the broader community, outside the producer organization often benefits from Fairtrade.