Global Wage Report (2024-25) by ILO

The Global Wage Report (2024-25), published by the International Labour Organization (ILO), provides an in-depth analysis of wage trends worldwide. It highlights important changes in wage inequality and real wage growth across different regions.

Key Findings from the Global Wage Report (2024-25)

1. Trends in Wage Growth:

1. Global Overview: After a decline in 2022, global real wage growth showed a recovery in 2023.
2. Regional Trends: Asia and the Pacific, Central and Western Asia, and Eastern Europe are seeing faster wage increases compared to other parts of the world.
3. Low-paid Workers in India: Around 9.5% of Indian workers are considered low-paid wage workers.

Do you know? The Palma ratio is a measurement of inequality calculated by dividing the total hourly wages of top 10% of wage distribution by total hourly wages of the bottom 40% of wage distribution.

 

2. Trends in Labour Income Inequality:

1. Global Wage Inequality: Overall, wage inequality has shown a declining trend globally. However, inequality remains highest in low-income countries and lowest in high-income countries.
2. Informal Economy:
   • Women and workers are overrepresented at the low end of the wage distribution.
   • The informal economy has seen an increase in absolute terms due to insufficient formal job creation.
3. Labour Productivity vs. Real Wages (1999-2024): Labour productivity has increased more rapidly in high-income countries than real wages during this period.

Addressing Wage Inequality and Promoting Fair Wages

1. Increased Research: Robust data and statistics are essential for measuring and estimating changes in inequality to better understand and address wage disparity.
 

2. National Strategies to Reduce Wage Inequality:

1. Wages should be set considering economic factors as well as the needs of workers and their families.
2. There should be a focus on promoting gender equality, equity, and non-discrimination in wage policies.

3. Redistribution of Income:

1. Income should be redistributed through systems of taxation and social transfers.
2. Alongside, policies should focus on promoting productivity, decent work, and the formalization of the informal economy.

 

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