This report provides a detailed look at wage trends around the world and in different regions, highlighting changes in wage inequality and real wage growth. It explores key challenges workers face globally and sheds light on patterns of income differences between and within countries. 

Global real average wage growth has started to rise again as inflation progressively eases. Despite these positive outcomes, high levels of wage inequality remain, making it a pressing policy issue.

The report finds that global wages have been growing faster than inflation in recent times. Such positive outcomes mark a notable recovery when compared to the negative global wage growth observed in 2022. However, wage growth has been uneven across regions, with emerging economies experiencing stronger growth than advanced economies.

The report concludes that reducing wage inequality requires both strong wage policies and structural support for equitable growth. By addressing these challenges countries can make real progress toward reducing wage gaps and promoting fair, sustainable, economic growth for workers worldwide.

Key recommendations

• Setting wages through social dialogue: wages should be set and adjusted through collective bargaining or agreed minimum wage systems involving governments, workers and employers.
• Taking an informed approach: wage-setting should take into account both the needs of workers and their families and economic factors.
• Promoting equality, and equal opportunity of treatment and outcomes: wage policies should support gender equality, equity and non-discrimination.
• Using strong data: decisions should be based on reliable data and statistics.
• Addressing root causes of low pay: national policies should reflect each country’s specific context and address the causes of low pay such as informality, low productivity and the undervaluing of jobs in sectors such as the care economy.