The International Labour Organisation has revealed that global wage inequality has decreased in two-thirds of countries since 2000.

According to the ILO’s Global Wage Report 2024-25, an average annual decline in wage inequality globally ranges from 0.5 to 1.7 per cent.

It stated that the reduction in global wage inequality marked a positive development, noting that wage disparities remained significant, particularly in low-income nations.

It noted that the most substantial reductions occurred in low-income countries, where inequality fell by 3.2 to 9.6 per cent annually over two decades.

The report added that in wealthier nations, progress had been slower, with a decline of 0.3 to 1.3 per cent in upper-middle-income countries and 0.3 to 0.7 per cent in high-income countries.

“Despite narrowing gaps, inequalities persist, particularly among the lowest paid. The bottom 10 per cent of earners receive only 0.5 per cent of the global wage bill, while the top 10 per cent earn nearly 38 per cent. Women and informal economy workers remain disproportionately represented among the lowest earners,” it explained.

The report also underscored uneven global wage growth, stating that in 2023, real wages grew by 1.8 per cent, with a projected rise of 2.7 per cent for 2024, the fastest growth in over 15 years.

“However, wage growth has been uneven. Emerging economies experienced stronger gains, with real wage growth in G20 emerging markets at 6.0 per cent in 2023. In contrast, advanced G20 economies saw real wages decline for two consecutive years,” it indicated.

Regionally, it said that Asia, the Pacific, and Central and Western Asia recorded faster real wage increases than other areas.

“Nevertheless, high inflation in previous years eroded many workers’ purchasing power, leaving millions struggling with cost-of-living pressures,” ILO asserted.

The ILO Director-General, Gilbert Houngbo, said, “The return to positive real wage growth is welcome.

However, wage disparities between and within countries remain unacceptably high, and the cost-of-living crisis continues to impact families globally.”

To address wage inequality, the organisation recommended strengthening wage-setting mechanisms, promoting collective bargaining, and targeting the root causes of low pay.

It advocated for policies to reduce informality, enhance productivity, and ensure fair treatment of workers.

Also, the ILO’s Economist, Giulia De Lazzari, emphasised the importance of inclusive economic growth.

“National strategies must combine strong wage policies with broader efforts to formalize economies and promote decent work,” she said.