August 16, 2021: Global Wage Report 2021 impresses upon the economic factors of all nations under survey and looks after the trends and their shifts in the wages of the professionals who cater their services to various sectors.
Global Wage Report 2021
It is the International Labor Organization (ILO), an agency of the United Nations, whose function is to establish the social and economic justice according the international labor standards. Keeping in focus the standards, policies and programs to be discussed by the governments, employers and workers.
The ILO published the Global Wage Report 2020-21 with the title, ‘Wages and Minimum Wages in the time of COVID-19.”
It is the seventh edition of the global report on wages.
The highest real wage growth in the period 2016-19 is seen among all regions of Asia and the Pacific. India is one of the leading countries where real wages increased more rapidly.
Areas of focus of the Global Wage Report 2021
- Cost of food
- Cost of housing
- Cost of health and education
- Cost of other essentials
Findings about India
- India has seen quite drastic fall in the wage rates with as much as 3.6% in formal and a high of 22.6% in terms of informal workers.
- The allowances for various sectors by various governments has been curtailed by state governments.
- Yet India, has strengthened its minimum wage system despite a complex minimum wage structure similar to Canada, China, Russia and US.
- The Code of Wages Bill is stated to improve the complexity of the minimum wage rate system in India bringing down the numbers of wage systems to a minimum of four and a maximum of 12.
Key findings of the report
- Out of 187 members of the ILO, 90 countries have minimum wages (statutory or negotiated).
- A single minimum wage rate system is available in half of those countries which have statutory minimum wages; while others have complex multiple-rate minimum wage systems.
- Around 32.7 crore wage earners are paid at or below the hourly minimum wage. Out of this, 15.3 crores are women.
- The global wage growth rate was between 1.6 percent and 2.2 percent in 2015-2019; while real wage growth rate was between 0.9 and 1.6 percent.
- Advanced G20 countries – real wage growth rate fluctuated. The Republic of Korea and Germany witnessed the highest acceleration (22%) in the wage growth rate; while Italy, Japan and the UK witnessed a decline in wages.
- Emerging G20 countries – real wage growth rate rose rapidly
- Women have been disproportionately affected due to the impact of the crisis on total wages.
- The wage inequalities increased as the impact of the crisis was felt more by the lower-paid workers. However, with the help of wage subsidies, compensation has been enabled in various countries.
- 60 countries went ahead with their planned adjustment levels in minimum wages in first quarter of 2020; despite the pandemic. In the second quarter, 6 out of 9 countries went ahead with the adjustments.
- Postponement of potential adjustments in wage levels – Among the 87 countries with irregular minimum wage rate adjustments; only 12 countries increased their minimum wages in the first half of 2020.