To address the global wage crisis and income inequality, the International Labour Organisation has launched its first-ever programme focused exclusively on living wages.

The initiative was unveiled by ILO Director-General Gilbert Houngbo, in collaboration with Luc Triangle, General Secretary of the International Trade Union Confederation, and Roberto Suárez Santos, Secretary-General of the International Organisation of Employers.

According to a statement issued by the ILO on Friday, this marks the first time in the organisation’s 105-year history that such a programme has been instituted to estimate and operationalise living wages across member states.

It mentioned that it followed the adoption of the 2024 tripartite agreement on wage policies, which prioritises fair wages, sustainable wage-setting mechanisms, and a new global standard that ensures no worker is left behind.

“This is not just about pay, it is about dignity. In a world where inequalities are staggering and social cohesion is weakening, it is more important than ever that we act to guarantee every worker earns a living wage that allows them and their families to live decently,” Houngbo said.

According to ILO, the programme will utilise the ILO’s unique methodology to estimate living wages, relying on national statistical data and consultations with employers’ and workers’ organisations.

“It aims to define what constitutes a decent standard of living in each country and align wages accordingly,” it stated.

Central to the initiative is establishing a global “wage data hub” that will support evidence-based wage-setting practices in ILO member states.

It added that the programme also aims to reinforce the roles of wage-setting institutions such as collective bargaining systems and national minimum wage frameworks, while tackling the structural root causes of low wages.

ITUC’s General Secretary, Luc Triangle, hailed the initiative as a “historic breakthrough” for workers around the world.

“The adoption of the ILO agreement on living wages is a significant victory, but it must now be translated into real change on the ground. Millions of workers continue to live in poverty despite being employed,” he stressed.

Representing employers, IOE’s Roberto Santos acknowledged the business case for fair wages.

“Living wages are increasingly relevant for companies operating across borders. However, implementation must consider economic realities, especially in developing countries. Tackling informality and creating enabling environments for businesses are key,” Santos said.

It added that ILO is also seeking to bring new partners on board, including governments, private sector players, and civil society organisations.

ILO stressed that this bold initiative is set to reshape wage systems globally, putting the principle of decent work at the heart of economic and social development.


https://punchng.com/ilo-unveils-programme-to-tackle-income-inequality/