India has recorded the highest average real wage growth in South Asia during 2008-17, according to a report by the International Labour Organisation (ILO). However, the global wage growth has declined from 2.4 per cent in 2016 to 1.8 per cent in 2017.
Reflecting more rapid economic growth than in other regions, workers in Asia and the Pacific have enjoyed the highest real wage growth among all regions over the period 2006-17, with countries such as China, India, Thailand and Vietnam leading the way, the Global Wage Report 2018-19 said. The findings are based on data from 136 countries. Interestingly, in the last 20 years, average real wages have almost tripled in emerging and developing G20 countries, the ILO report found, while in advanced G20 countries, they have increased by just nine per cent.
In South Asia, India is seen leading the average real wage growth between 2008-17 at 5.5% against a regional median of 3.7%. Following India was Nepal (4.7), Sri Lanka (4), Bangladesh (3.4), Pakistan (1.8) and Iran (0.4).
The report said that all emerging G20 countries, except Mexico, experienced significant positive growth in average real wages between 2008 and 2017. "Wage growth continues in Saudi Arabia, India and Indonesia, whereas in Turkey it declined to around one per cent in 2017," it said adding that South Africa and Brazil have experienced positive wage growth starting from 2016 after a phase of mostly zero growth during the period 2012-16.
It also noted that a number of countries have recently undertaken measures to strengthen their minimum wage with a view to providing more adequate labour protection. The report added that wages grew higher and faster in less well-off countries last year than in richer nations, but salaries are still far too low. Pay rose by just 0.4 per cent during last year in advanced economies, but grew at over four per cent in developing countries.
"We are seeing some degree of — I don't want to exaggerate it — convergence," said ILO Director-General Guy Ryder, noting that "wages in developing countries are increasing more quickly than those in higher-income countries."
"That sounds like good news, because we all want to see convergence around the world. But let's not exaggerate, because the gaps are still very, very big. Very often, the level of wages is still not high enough for people to meet their basic needs," he added.
For the first time, the ILO report also focuses on the global gender pay gap, using data from 70 countries and some 80 per cent of employees worldwide. Its findings indicate that despite some significant regional differences, men continue to be paid around 20 per cent more than women; "perhaps the biggest single injustice in the world of work", Ryder said.
HIKES IN DECLINE
- 1.8% Average 2017 global wage hike; down from last year’s 2.4%
- 5.5% India’s wage growth
- 3.7% South Asia’s maedian growth
- 0.4% Wage growth in advanced economies
- 20% Global gender pay gap
- 136 No of countries surveyed by ILO
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