ILO Global Wage Report: Uneven Wage Recovery Shows Urgent Need For Fair Pay And Living Wages

The report presents trends and data in wages worldwide. A number of the main observations point to persistent wage inequalities and the fact that the recovery in real wages is uneven and insufficient to counteract the cost-of-living crisis of recent years.

Key highlights of the report include:

• A global, but insufficient increase in real wages: A 2.7% growth in 2024 marks the largest increase in 15 years, but the recovery remains regionally uneven. Africa, Northern America and parts of Europe recorded stagnant or negative real wage growth.
• Persistent inequality: Low-income countries suffer from significantly higher wage inequality compared to high-income nations, with nearly 22% of workers earning less than half the median hourly wage.
• A continual gender wage gap: Women, especially in lower-middle-income countries, remain disproportionately affected by wage inequality due to overrepresentation in informal, precarious and low-paid work.
• Decoupling between productivity and wages: Despite a 29% rise in productivity in high-income countries between 1999 and 2024, real wages have only risen by 15%, highlighting a failure to share productivity gains equitably with workers.

ITUC General Secretary Luc Triangle emphasised: "The findings of this report are a wake-up call for governments and employers worldwide. While the global economy is rebounding, workers are not seeing the benefits of this recovery in their salaries.

“It’s critical to strengthen collective bargaining and ensure that wages reflect both productivity gains and the cost of living. Everyone deserves a fair share of the prosperity they help create."

The ITUC calls for urgent action to address wage disparities, including:

• Ensuring living wages through strengthened minimum wages and collective bargaining, in order to provide workers and their families with a decent standard of living.
• Strengthening wage-setting mechanisms through collective bargaining and tripartite social dialogue to ensure fair wage increases that keep pace with productivity and the cost of living.
• Minimum wage adjustments need to be more responsive to inflation, especially to protect low-wage earners.
• Stronger worker protections, policies and regulations to address precarious and insecure forms of work.
• Action to close the gender wage gap and ensure equal pay for work of equal value, including robust antidiscrimination legislation, pay transparency and effective enforcement.

Luc Triangle added: “This report reinforces the need for global efforts, based on social dialogue, to secure fair and living wages, reduce inequality and protect the dignity of all workers. The ITUC urges policymakers to act now and put workers at the heart of economic recovery strategies.”

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