ILO
Wage inequality has declined in two-thirds of all countries since 2000: ILO
Wage inequality has decreased in about two-thirds of all countries since 2000, says a new report released by the International Labour Organization (ILO) on Thursday.
Despite this positive trend, significant wage inequality persists worldwide.
‘The Global Wage Report 2024-25: Is wage inequality decreasing globally?’ finds that since the early 2000s, on average, wage inequality, which compares the wages of high and low wage earners, decreased in many countries at an average rate that ranged from 0.5 to 1.7 percent annually, depending on the measure used.
The most significant decreases occurred among low-income countries where the average annual decrease ranged from 3.2 to 9.6 percent in the past two decades.
Wage inequality is declining at a slower pace in wealthier countries, shrinking annually between 0.3 and 1.3 percent in upper-middle-income countries, and between 0.3 to 0.7 percent in high-income countries.
ILO to launch new report highlighting wage trends, inequality today
Moreover, even though wage inequality narrowed overall, decreases were more significant among wage workers at the upper end of the pay scale.
Real wages rose globally but regional differences persist
The report also finds that global wages have been growing faster than inflation in recent times.
In 2023, global real wages grew by 1.8 percent with projections reaching 2.7 percent growth for 2024, the highest increase in more than15 years.
Such positive outcomes mark a notable recovery when compared to the negative global wage growth, of -0.9 percent, observed in 2022, a period when high inflation rates outpaced nominal wage growth.
However, wage growth has been uneven across regions, with emerging economies experiencing stronger growth than advanced economies, the report finds.
While advanced G20 economies registered a decline in real wages for two consecutive years (−2.8 percent in 2022 and −0.5 percent in 2023), real wage growth remained positive for both years in emerging G20 economies (1.8 percent in 2022 and 6.0 percent in 2023).
Regional wage growth patterns varied considerably
Wage workers in Asia and the Pacific, Central and Western Asia, and Eastern Europe experienced their real wage increases at a faster rate than those in other parts of the world, according to the report.
"The return to positive real wage growth is a welcome development," said ILO Director-General, Gilbert F. Houngbo.
Bangladesh ranks 9th among countries at the highest risk of climate-induced disasters: ILO Report
"However, we must not forget that millions of workers and their families continue to suffer from the cost-of-living crisis that has eroded their living standards and that wage disparities between and within countries remain unacceptably high."
Persistent wage inequality
Despite recent progress, high levels of wage inequality remain a pressing issue.
The report shows that globally, the lowest-paid 10 percent of workers earn just 0.5 percent of the global wage bill, while the highest-paid 10 percent earn nearly 38 percent of this wage bill.
Wage inequality is the highest in low-income countries, with close to 22 percent of wage workers there classified as low-paid.
Women and wage workers in the informal economy are more likely to be among the lowest paid.
This finding reinforces the need for targeted actions to close wage and employment gaps and ensure fair wages for all wage workers.
Wage inequality is relevant in all countries and regions. Globally, however, one in every three workers is a non-wage worker.
In most low- and middle-income countries the majority are self-employed workers, who can only find opportunities to earn a living in the informal economy.
It is for this reason that the report broadens its analysis to include the self-employed in the case of low- and middle- income countries.
As a result, measured labour income inequality increases significantly in these regions, as compared to that measured based only on wages from wage workers.
"National strategies to reduce inequalities require strengthening wage policies and institutions," says Giulia De Lazzari, ILO Economist and one of the main authors of the report.
"But equally important is to design policies that promote productivity, decent work and the formalization of the informal economy."
Strengthening wage policies to reduce inequality
The study emphasizes the need for targeted policies to foster inclusive economic growth.
The report concludes that reducing wage inequality requires both strong wage policies and structural support for equitable growth. By addressing these challenges countries can make real progress toward reducing wage gaps and promoting fair, sustainable, economic growth for workers worldwide.
Key ILO recommendations include:
Setting wages through social dialogue: wages should be set and adjusted through collective bargaining or agreed minimum wage systems involving governments, workers and employers.
Taking an informed approach: wage-setting should take into account both the needs of workers and their families and economic factors.
Promoting equality, and equal opportunity of treatment and outcomes: wage policies should support gender equality, equity and non-discrimination.
Using strong data: decisions should be based on reliable data and statistics.
Addressing root causes of low pay: national policies should reflect each country’s specific context and address the causes of low pay such as informality, low productivity and the under-valuing of jobs in sectors such as the care economy.
3 weeks ago
ILO to launch new report highlighting wage trends, inequality today
The International Labour Organization (ILO) will unveil the latest edition of its Global Wage Report today (3:30 pm Dhaka time).
'The Global Wage Report 2024-25: Is wage inequality decreasing globally?' provides a detailed look at wage trends around the world and in different regions, highlighting changes in wage inequality and real wage growth.
It explores key challenges workers face globally and sheds light on patterns of income differences between and within countries, said the ILO.
The ILO Director-General, Gilbert H. Houngbo, and Rosalía Vázquez-Alvarez, ILO Economist and Wage Specialist, will present the report at an online press briefing.
3 weeks ago
Aligning labour law with international standards ‘essential’ to consider GSP+, EU Ambassador says
Ambassador of the European Union (EU) to Bangladesh Charles Whiteley on Wednesday said aligning labour law with international standards will be an “essential element” for the European Parliament and the Commission in considering Bangladesh’s application for market access, the GSP+.
“Bangladesh has the option to accede to GSP+ which is the next most generous GSP programme after the Everything but Arms (EBA),” he said while speaking at a seminar in Dhaka.
Commerce Minister Tipu Munshi attended the seminar as the chief guest while President of Dhaka Chamber of Commerce and Industry (DCCI) Md Sameer Sattar delivered welcome remarks.
Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Lokman Hossain Miah, among others, spoke at the seminar.
The DCCI and European Union Delegation to Bangladesh jointly hosted the seminar, titled “Unlocking Trade and Investment for European Companies in Bangladesh.”
Read: EU urged to extend transition period of GSP up to 6 years for smooth graduation of Bangladesh
The EU ambassador said the implementation of the National Action Plan on the labour sector, which Bangladesh agreed with the EU, will be key deciding factor for GSP+.
“We are closely following the ongoing amendments of the Bangladesh Labour Act. We hope that the amendments will be effective with full transparency, in consultation with tripartite stakeholders, and with technical assistance from ILO,” he said.
The envoy said Bangladesh is a rising economy with a great story of economic development and social progress.
The graduation to a lower middle-income and to a developing country status are historic milestones which bring new opportunities and which call for a reinvigoration of EU-Bangladesh ties, he said.
1 year ago
PM returns home from Switzerland
Bangladesh's Prime Minister Sheikh Hasina has returned home from Geneva, wrapping up her three-day official visit to Switzerland.
A regular flight of Biman Bangladesh Airlines carrying the prime minister and her entourage landed at Hazrat Shahjalal International Airport early Saturday (June 17 at 1:55 am).
Earlier, the flight took off from Geneva International Airport at 11:50am local time (3:50pm Bangladesh time) on Friday.
The Prime Minister exchanged pleasentaries with the passengers in the flight and inquired about their well-beings.
Read: PM leaves Geneva for home ending 3-day visit
The PM went to Geneva on June 13 to attend the "World of Work Summit: Social Justice for All" held on June 14 and 15 in the Swiss city.
She addressed the plenary session of 'World of Work Summit 2023' at Palais de Nations on Wednesday.
The ILO's summit is a high-level forum for global voices to address the need for increased, coordinated and coherent action in support of social justice.
The summit brought together over a dozen heads of state and government, high-level representatives from the United Nations, other international organizations, and employers’ and workers’ organizations.
Read: Next general election to be held in time: PM Hasina tells Geneva reception
Hasina also had two separate meetings with President of South Africa Matamela Cyril Ramaphosa and President of Malta Dr George Vella.
Besides, she held meetings separately with UNHCR chief Flippo Grandi, Prince Rahim Aga Khan, President of the Swiss Confederation Alain Berset and Director General of International Labour Organisation (ILO) Gilbert F. Houngbo there on the day.
After the meeting with Swiss President Berset, a Memorandum of Understanding (MoU) on Knowledge and Skills enhancement between Bangladesh and Switzerland was signed.
In the evening, the PM attended a dinner with high level dignitaries hosted by the ILO Director General at its headquarters.
Read: WTO chief meets PM Hasina, wants Dhaka to reduce subsidies on fisheries
On June 15, she joined “A talk at the WEF”, followed by a meeting with WEF founder Prof Klaus Schwab at WEF Office.
She also addressed an event on “New Economy and Society in Smart Bangladesh” organised by the World Economic Forum (WEF) there.
Besides, Qatar Minister of Labour Dr Ali Bin Samik Al Marri and WTO Director General Dr Okonjo-Iweala separately met her at her place of residence.
Hasina also attended a civic reception in the evening.
Read more: PM takes regular commercial flight on the way home from Geneva, exchanges pleasantries with passengers
1 year ago
PM Hasina leaves for Geneva to attend World of Work Summit
Prime Minister Sheikh Hasina left Dhaka for Geneva, Switzerland on Tuesday (June 13, 2023) morning to attend the two-day "World of Work Summit: Social Justice for All" to be held in the Swiss city on June 14-15.
A commercial flight of Biman Bangladesh Airlines carrying the prime minister departed Hazrat Shahjalal International Airport at 10.01 am. The flight is scheduled to land at Geneva International airport at 5:30 pm local time (9:30 pm Bangladesh Time).
On June 14, UNHCR chief Flippo Grandi will call on the prime minister at the bilateral room of Hotel President Wilson.
Later the PM will call on President of the Swiss Confederation Alain Berset at Palais de Nations. After the call-on there will be a possibility of signing a Memorandum of Understanding (MoU) on Knowledge and Skills enhancement between Bangladesh and Switzerland.
Read: Work together to sustain national development: PM Hasina tells Awami League members
In the afternoon, the prime minister will address the Plenary of 'World of Work Summit 2023' at Palais de Nations.
On her arrival there, she will be greeted by ADG and Regional Director of ILO.
There will be a red carpet reception and Guard of Honour from the gate to the meeting venue.
She will also have a call on with President of Malta Dr. George Vella.
Read: PM Hasina wants greater cooperation between Bangladesh and Indian armies
In the evening, the PM will attend a dinner with high level dignitaries hosted by the DG ILO at its headquarters.
On June 15, she will attend the 'A talk at the WEF', followed by a meeting with founder of WEF Prof Klaus Schwab at WEF Office.
There, she will address at the event on "New Economy and Society in Smart Bangladesh" organised by the World Economic Forum.
In the evening, WTO DG Dr. Okonjo- Iweala will call on her at Hotel President Wilson. She will also attend a community event in the evening.
Read: Volatile global situation likely to worsen further: PM Hasina tells parliament
Hasina will leave Geneva at 11am on June 16 and she is expected to arrive in Dhaka in the early hours of June 17.
"The World of Work Summit 2023: Social Justice for All" is a high-level forum for global voices to address the need for increased, coordinated and coherent action in support of social justice, according to organisers.
It will provide an opportunity to discuss and inform the proposal to forge a Global Coalition for Social Justice, which was welcomed by the Governing Body of the International Labour Office at its 347th Session.
A number of high-level guests, including former President of France, Francois Hollande, former President of Panama, Juan Carlos Varela, and the 2014 Nobel Peace Prize Laureate Kailash Satyarthi, as well as representatives of employers and workers, will address the conference.
Read: President Erdogan and PM Hasina vow to take Dhaka-Ankara ties to new height
1 year ago
Multiple crises set to plunge more children into poverty, ILO and UNICEF report warns
The number of children without access to social protection is increasing year-on-year, leaving them at risk of poverty, hunger and discrimination, according to a new report released today by the International Labour Organization (ILO) and UNICEF.
According to the report, an additional 50 million children (aged 0-15) missed out on a critical social protection provision – specifically, child benefits (paid in cash or tax credits) – between 2016 and 2020, driving up the total to 1.46 billion children under 15 globally.
“Ultimately, strengthened efforts to ensure adequate investment in universal social protection for children, ideally through universal child benefits to support families at all times, is the ethical and rational choice, and the one that paves the way to sustainable development and social justice,” Shahra Razavi, director of Social Protection Department at the ILO, said.
Child and family benefit coverage rates fell or stagnated in every region in the world between 2016 and 2020, leaving no country on track to achieve the Sustainable Development Goal of achieving substantial social protection coverage by 2030, as per the report.
In Latin America and the Caribbean, for example, coverage fell significantly from approximately 51 percent to 42 percent. In many other regions, coverage has stalled and remains low.
In Central and South Asia, East Asia and Southeast Asia, Sub-Saharan Africa, Western Asia, and North Africa coverage rates have been at around 21 percent, 14 percent, 11 percent and 28 percent respectively since 2016.
Failure to provide children with adequate social protection leaves them vulnerable to poverty, disease, missed education, and poor nutrition, and increases risk of child marriage and child labour.
Globally, children are twice as likely as adults to live in extreme poverty – those struggling to survive on less than US$ 1.90 (PPP*) a day – approximately 356 million children.
A billion children also live in multidimensional poverty – meaning without access to education, health, housing, nutrition, sanitation, or water.
Children living in multidimensional poverty increased by 15 percent during the Covid-19 pandemic, reversing previous progress in reducing child poverty and highlighting the urgent need for social protection.
Moreover, the pandemic highlighted that social protection is a critical response in times of crisis.
Nearly every government in the world either rapidly adapted existing schemes or introduced new social protection programmes to support children and families, but most fell short of making permanent reforms to protect against future shocks, according to the report.
“As families face increasing economic hardship, food insecurity, conflict, and climate-related disasters, universal child benefits can be a lifeline,” said Natalia Winder-Rossi, UNICEF Director of Social Policy and Social Protection.
“There is an urgent need to strengthen, expand and invest in child-friendly and shock-responsive social protection systems. This is essential to protect children from living in poverty and increase resilience particularly among the poorest households.”
The report emphasizes that all countries, irrespective of their level of development, have a choice: whether to pursue a “high-road” strategy of investment in reinforcing social protection systems, or a “low-road” strategy that misses out on necessary investments and will leave millions of children behind.
To reverse the negative trend, ILO and UNICEF urge policymakers to take decisive steps to attain universal social protection for all children, including:
· Investing in child benefits which offer a proven and cost-effective way to combat child poverty and ensure children thrive.
· Providing a comprehensive range of child benefits through national social protection systems that also connect families to crucial health and social services, such as free or affordable high-quality childcare.
· Building social protection systems that are rights-based, gender-responsive, inclusive, and shock responsive to address inequities and deliver better results for girls and women, migrant children, and children in child labour for example.
· Securing sustainable financing for social protection systems by mobilizing domestic resources and increasing budget allocation for children.
Strengthening social protection for parents and caregivers by guaranteeing access to decent work and adequate benefits, including unemployment, sickness, maternity, disability, and pensions.
1 year ago
ILO Tokyo office wants to continue supporting human rights due diligence in Bangladesh
The International Labour Organization (ILO) Tokyo office has expressed Japan's interest in further supporting and collaborating for human rights due diligence – a process for identifying, preventing, mitigating, and accounting for human rights impacts – in Bangladesh.
A key component of human rights due diligence is meaningful engagement with stakeholders, particularly rights-holders such as employees, community members, human rights defenders, supply chain workers, and consumers.
Read: BGMEA urges global brands, buyers to adopt strategies for promoting mutual growth
A delegation comprising high officials from the ILO Tokyo office paid a courtesy call on BGMEA President Faruque Hassan in the capital Monday.
The delegation, led by ILO Tokyo Office Programme Coordinator Yuki Kobayashi included Training and Research Officer Arisa Haboshi and Research Manager Kyohei Yabu.
Syed Niaz, team leader of Better Work Bangladesh, was also present.
BGMEA vice-presidents Md Nasir Uddin, and Miran Ali; directors Barrister Shehrin Salam Oishee, Abdullah Hil Rakib, Barrister Vidiya Amrit Khan and Inamul Haq Khan also attended the meeting.
Read: BGMEA urges Rajuk to allocate land for apparel club for foreign nationals
They discussed the possible scope of collaboration to carry forward the achievements made by Bangladesh's readymade garments industry particularly in the area of workplace safety, occupational safety and health, workers' rights and their well-being.
Faruque gave an overview of how safety initiatives alongside extensive training of workers jointly taken by the government, brands, and the ILO have transformed Bangladesh's readymade garments (RMG) sector into "one of the safest industries in the world."
He also highlighted the initiatives and programmes, including the ILO's Better Work Program in the RMG sector to promote decent working conditions in the garment factories in Bangladesh.
2 years ago
More than one in five people face violence, harassment at work: UN
More than one in five people employed – almost 23 per cent – have experienced violence and harassment at work, whether physical, psychological or sexual, according to a new analysis by the International Labour Organization (ILO), Lloyd's Register Foundation (LRF) and Gallup.
"The Experiences of Violence and Harassment at Work: A global first survey" assesses the extent of the problem and looks at the factors that may prevent people from talking about what they have gone through, including shame, guilt or a lack of trust in institutions, or because such unacceptable behaviours are seen as "normal."
"Violence and harassment at work is difficult to measure. The report found that only half of victims worldwide had disclosed their experiences to another person, and often only after they had suffered repeated incidents," the ILO said.
"The most common reasons given for non-disclosure were waste of time and fear for their reputation. Women were more likely to share their experiences than men (60.7 percent compared to 50.1 percent)."
Globally, 17.9 percent of employed men and women said they had experienced psychological violence and harassment in their working life, and 8.5 percent had faced physical violence and harassment, with more men than women experiencing this.
Of respondents, 6.3 percent reported facing sexual violence and harassment, with women being particularly exposed, the ILO said.
Young people, migrant workers, and salaried women and men have been the most exposed to violence, according to the UN labour agency.
Young women were twice as likely as young men to have faced sexual violence and harassment, while migrant women were almost twice as likely as non-migrants to report sexual violence and harassment.
More than three out of five victims said they had experienced violence and harassment multiple times, and for the majority, the most recent incident took place within the past five years.
Read more: Sexual harassment, misconduct went on unchecked at Al Jazeera, staff allege: BBC investigation
"It's painful to learn that people face violence and harassment not just once but multiple times in their working lives," Manuela Tomei, ILO assistant director-general for governance, rights and dialogue, said.
"Psychological violence and harassment is the most prevalent across countries, and women are particularly exposed to sexual violence and harassment. The report tells us about the enormity of the task ahead to end violence and harassment in the world of work. I hope it will expedite action on the ground and towards the ratification and implementation of ILO Convention 190."
The ILO's Violence and Harassment Convention, 2019 (or 190) and Recommendation (No. 206) are the first international labour standards to provide a common framework to prevent, remedy and eliminate violence and harassment in the world of work, including gender-based violence and harassment.
The Convention includes the specific recognition, for the first time in international law, of the right of everyone to a world of work, free from violence and harassment, and outlines the obligations of signatories towards this end.
Read more: 63.51% women in Bangladesh face online harassment: Study
2 years ago
Bangladesh to finish amending labour law by mid-2023, Law Minister tells ILO
The process of amending the Bangladesh Labour Law will be completed by mid-2023 and the amended law will be also applied to all industrial zones in the country, Law Minister Anisul Huq has said.
There are some confusions as to which of the two – the Bangladesh Labour Act and the Bangladesh EPZ Labour Act – will apply to the newly established industrial zones. But the amended Bangladesh Labour Act will be applied to Bangladesh industrial zones, the minister declared.
The law minister was speaking at the 346th session of the Governing Body of the International Labour Organisation (ILO) in Switzerland’s Geneva.
Bangladesh continues its efforts to resolve the complaints raised under Article 26 of the ILO Constitution, said Anisul.
Read more: Bangladesh considers labour rights related recommendations from US, EU, ILO with due importance: PM's Adviser
After submitting the report to the meeting of the Governing Body of the ILO last March, the Bangladesh government has made significant progress in the implementation of the roadmap in about seven months, he added.
“The government has tried to secure progress in the four clusters of the roadmap to improve the overall labour situation in the country.”
The minister also said the government has already amended the Bangladesh Labour Code and enacted the Bangladesh EPZ Labour Code. In this process, the observations of the ILO Committee of experts have been considered.
Assuring ILO, he said the process of revising the Labour Law has been started as the next phase of legal reformation. “So far, 17 stakeholders have received proposals for amendments. The Tripartite Working Group is seriously working on compiling these amendment proposals.”
Read more: ILO offers help for skills development of workforce in Bangladesh
The review committee will further discuss the recommendations or proposals compiled and seek the approval of the National Tripartite Consultative Council, he added.
Regarding trade union registration, the law minister said this process has been fully digitised to ensure greater accountability and transparency.
The Department of Labour with the help of its four industry related institutes and 32 labour welfare centers is providing training to workers and employers on the trade union registration process, he added.
In this regard, regular training is being given to the concerned officers. A pre-application service has been introduced by the Department of Labour to assist, he said.
Read more: BIDA, ILO sign deal to streamline one-stop service for investors
“Trade union registration process will be simplified further, if necessary.”
Referring to the significant measures taken by the Bangladesh government to strengthen labour inspection and enforcement in line with the roadmap, the minister said, "We are committed to continue engagement with domestic and foreign social partners and other stakeholders for bringing qualitative changes in the labour sector."
He also mentioned handing over of the document of ratification of ILO Convention 138 to its Director General the 344th session of the Governing Body.
“In January this year, the Bangladesh government also ratified Protocol 29 of the ILO Convention on Forced Labour, 1930. Clearly, these are a demonstration of our strong commitment to ILO labour standards.”
Read More: ILO, FBCCI team up to boost workplace safety, healthcare in 10 sectors
The law minister is leading the Bangladesh delegation in the ILO session that started from October 31.
2 years ago
Bangladesh considers labour rights related recommendations from US, EU, ILO with due importance: PM's Adviser
Prime Minister's Adviser for Private Industry and Investment Salman F. Rahman has said Bangladesh considers the recommendations of the United States of America, European Union and the International Labor Organization (ILO) on labor rights with due importance.
Speaking at the virtual meeting of the US-Bangladesh labor working group on Thursday, Rahman detailed the steps taken by the current government in the labor sector.
The Prime Minister's Adviser for Private Industry and Investment and US Under Secretary for Economic Growth, Energy, and the Environment Jose W. Fernandez led the Bangladesh and US delegations respectively at the inaugural meeting of the working group.
US team leader Fernandez praised the steps taken to develop the labour sector in Bangladesh and called for the full implementation of the recommendations of the International Labor Organization, said the Ministry of Foreign Affairs on Friday.
He pledged to provide necessary cooperation and work together for the further development of the labour sector of Bangladesh.
Bangladesh and the US discussed "collaboration and assistance" to Bangladesh as it takes further steps to implement the requirements developed by Bangladesh for its International Labor Organization roadmap and adhere to internationally recognized labor rights.
2 years ago