ILO Urges Adoption of Living Wages for Global Workforce

The International Labour Organisation (ILO) reports that global real wages have grown by 2.7 per cent—the highest in 15 years—but wage recovery remains inconsistent, with ongoing inequalities and stagnant growth in Africa, Northern America, and parts of Europe.

Its newly published Global Wage Report 2024-25 highlighted significant disparities, including wage inequality in low-income countries where 22 per cent of workers earn less than half the median hourly wage.

The report’s findings come amidst growing concerns about the cost-of-living crisis, with inflation disproportionately affecting low-wage earners worldwide.

The report underscored the need for governments to prioritise wage justice as part of broader economic recovery strategies, warning that failing to address these disparities could deepen inequalities and stifle economic growth.

“Women, particularly in lower-middle-income nations, are disproportionately impacted due to their concentration in informal and low-paid roles, underscoring a glaring gender wage gap,” the report stated.

The report stated that despite a 29 per cent productivity rise in high-income nations between 1999 and 2024, real wages have only grown by 15 per cent, reflecting a disconnect between productivity gains and workers’ earnings.

The General Secretary of the International Trade Union Confederation, Luc Triangle, called the findings “a wake-up call” for global policymakers and employers.

“While the global economy is rebounding, workers are not seeing the benefits of this recovery in their salaries,” he said.

Triangle has called for urgent action to tackle wage disparities and ensure fair, living wages that uphold workers’ economic dignity.

He emphasised the need for minimum wages that adapt to inflation to safeguard low-income earners and for wage-setting mechanisms strengthened through collective bargaining and social dialogue to align pay increases with productivity and the cost of living.

However, to address inequalities, Triangle advocates closing the gender wage gap through robust anti-discrimination laws, pay transparency, and equal pay enforcement.

He also highlighted the importance of improving worker protections to combat precarious and insecure forms of employment, ensuring stability and fairness for all workers.

Triangle emphasised that collective bargaining and tripartite social dialogue must be at the forefront of these efforts.

“It is critical to strengthen collective bargaining and ensure wages reflect both productivity gains and the cost of living. Everyone deserves a fair share of the prosperity they help create,” he stated.

“This report reinforces the need for global efforts to secure fair wages, reduce inequality, and protect the dignity of all workers.”