Bangladesh ranks third in South Asia for low-paid workers, following Sri Lanka and Bhutan, according to the ILO Global Wage Report 2024-25. The report defines low-paid workers as those earning less than 50% of the median hourly wage, and 11.2% of Bangladesh’s workers fall into this category. Comparatively, Sri Lanka has 25.9% and Bhutan 13.8%, while Pakistan has the lowest ratio in the region at 9.4%.
Key Findings in the matters includes global Trends Worldwide, 11.5% of workers are classified as low-paid, with women, migrants, and informal workers overrepresented. Wage inequality has decreased in about two-thirds of countries since 2000, with the sharpest declines in low-income countries. Real wages globally grew by 1.8% in 2023, recovering from a decline of -0.9% in 2022, and are projected to grow by 2.7% in 2024, the fastest rate in 15 years.
Regional Differences:
Wage growth has been stronger in emerging economies compared to advanced ones. Asia and the Pacific have seen faster wage growth than other regions. Gender Disparities: Women make up a significant proportion of low-paid workers globally, with disparities present across all income groups.
Challenges in Bangladesh:
Wage inequality remains high, exacerbated by the over representation of women and informal workers among the low-paid. Strengthening wage policies and institutions is critical to addressing wage inequality, promoting productivity, and formalizing the informal economy.
ILO Recommendations
ILO recommends that Bangladesh should use collective bargaining or minimum wage systems to set fair wages. Implement policies promoting gender equality, non-discrimination, and decent work. Foster inclusive economic growth to bridge wage and employment gaps globally.
ILO Director-General Gilbert F. Houngbo emphasized the need for targeted action to reduce disparities and support vulnerable workers, despite the recent improvements in wage growth.
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