It provides detailed look at wage trends across the globe highlighting changes in wage inequality and real wage growth. 

Key Findings

• Trends in wage growth
  • Global:  After falling in 2022, global real wage growth recovered in 2023.
  • Regional: Average wages are increasing faster in Asia and the Pacific, Central and Western Asia, and Eastern Europe compared to the rest of the world.
    • Around 9.5% of the Indian workers are low paid wage workers
• Trends in labour income inequality 
  • Wage inequality: Overall it has witnessed a declining trend globally.
    • However,  it is highest in low-income countries and lowest in high-income countries.
  • Informal Economy: Women and workers are overrepresented at the low end of the wage distribution.
    • Moreover, informal employment has increased in absolute terms due to insufficient formal job creation
• Labour Productivity (1999-2024): It has increased more rapidly in high-income countries than real wages.

Way forward

• Increased research: Robust data and statistics should be used for measuring and estimating change in inequality.
• National strategies to reduce wage inequality: Wages should be set with consideration of economic factors as well as needs of workers and their families and should promote gender equality, equity and non-discrimination
• Redistribution of Income through system of taxes and social transfers: It  should be followed with  policies promoting  productivity, decent work and the formalization of the informal economy