Global wage report 2020-21

• International Labour Organisation releases the Global wage report 2020-21.

• Report titled “Wages and minimum wages in the time of COVID-19” presents the emerging empirical evidence of the effects of the crisis on wages.

Key findings:

• Disproportionate impact of COVID-19: workers in lower-skilled occupations lost more working hours than higher-paying managerial and professional jobs.

• Informal workers in India suffered a 22.6% fall in wages, even as formal sector employees had their salaries cut by 3.6% on an average,

• Gender wage gap: Without wage subsidies, women would have lost 8.1% of their wages in the second quarter of 2020 compared to 5.4% for men.

• Between 2016-19, wages increased most rapidly in Asia and the Pacific and Eastern Europe and slowly in North America and northern, southern and western Europe.

Recommendations:

• Adequate and balanced wage policies, arrived at through strong and inclusive social dialogue.

• Adequate minimum wages could help to ensure more social justice and less inequality.

• ILO is the United Nations agency. It brings together governments, employers and workers to drive a human-centred approach to the future of work through employment creation, rights at work, social protection and social dialogue.

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Mains Paper 2: International

Prelims level: Global wage report

Mains level: Key findings and recommendations of the global wage report

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