Bangladesh has the third-largest share of low-paid workers in South Asia

Bangladesh ranks third in South Asia for the proportion of low-paid workers, following Sri Lanka and Bhutan, according to a report by the International Labour Organization (ILO) released yesterday. The share of low-paid workers in Bangladesh—defined as those earning below 50% of the median hourly wage—stands at 11.2%. In comparison, Sri Lanka has 25.9% of its workforce in low-paid jobs, while Bhutan’s ratio is 13.8%, the ILO’s Global Wage Report 2024-25 reveals.

Among South Asian nations, Pakistan has the lowest proportion of low-paid workers at 9.4%, followed by India. The report notes that globally, 11.5% of workers fall into the low-paid category. It highlights that women are disproportionately affected by low wages, comprising about half of all low-paid workers. Migrants and those in informal sectors are also significantly represented among the low-paid workforce.

The report also pointed out that wage inequality has decreased in about two-thirds of countries since 2000, with the most significant reductions occurring in low-income nations. However, the pace of wage inequality reduction is slower in wealthier countries.

On a global scale, real wages grew by 1.8% in 2023, with projections for 2.7% growth in 2024—the highest increase in over 15 years. This growth follows a period of negative global wage growth in 2022, when high inflation outpaced wage increases. Emerging economies saw stronger wage growth compared to advanced economies.

The ILO emphasized that while global wage growth is a positive development, millions of workers are still struggling with rising living costs, and wage disparities between and within countries remain alarmingly high. The lowest-paid 10% of global workers earn just 0.5% of the total global wage bill, while the highest-paid 10% earn nearly 38%.

Wage inequality is particularly stark in low-income countries, where nearly 22% of workers are considered low-paid. Women and workers in informal sectors are more likely to be in this category, underscoring the need for policies aimed at closing wage and employment gaps.

ILO Economist Giulia De Lazzari, a lead author of the report, called for national strategies to reduce inequalities, stressing the importance of strengthening wage policies, improving productivity, and formalizing the informal economy. The ILO advocates for wage policies that support gender equality and equitable growth through collective bargaining and minimum wage systems involving governments, employers, and workers.