Global Initiative on Living Wages Launched by ILO with Key International Partners

The programme builds upon the momentum of the 2024 tripartite agreement on wage policies, which emphasized the critical importance of living wages in achieving decent work.

In a landmark move to combat income inequality and promote decent work worldwide, the International Labour Organization (ILO) has officially launched its first-ever global programme dedicated to promoting living wages. The initiative, unveiled by ILO Director-General Gilbert F. Houngbo, is being carried out in collaboration with the International Trade Union Confederation (ITUC) and the International Organization of Employers (IOE). This tripartite partnership signals a unified global effort to ensure that workers everywhere earn wages sufficient to provide a decent standard of living for themselves and their families.

A Historic Step Toward Fair Pay

The programme builds upon the momentum of the 2024 tripartite agreement on wage policies, which emphasized the critical importance of living wages in achieving decent work. For the first time, the ILO will implement a standardized approach to estimating living wages, based on a robust methodology that draws from national statistical data and extensive consultation with workers’ and employers’ organizations. These estimates will serve as a foundation for governments and businesses to implement fair wage-setting practices.

ILO Director-General Gilbert F. Houngbo emphasized the urgent need for this initiative, citing growing global inequality and the pressure on social cohesion.

“We live in a world in which inequalities remain enormous, social cohesion is under pressure, and where millions of workers are unable to afford a decent standard of living for themselves and their families,” Houngbo said. “In this context, it is more important than ever that we take action to ensure that every worker earns a living wage so they and their families can lead a decent life.”

Strengthening Wage-Setting Mechanisms

The ILO programme aims not only to estimate living wages but also to strengthen wage-setting institutions worldwide. This includes enhancing collective bargaining frameworks, minimum wage systems, and addressing the underlying causes of low pay, such as informality, weak labor protections, and systemic gender pay gaps.

As part of the initiative, the ILO will establish a “wage data hub,” a centralized platform that will support evidence-based wage-setting processes across its Member States. This tool will facilitate access to reliable data for policymakers, researchers, and social partners, enabling informed decision-making at both national and international levels.

Voices from the Global Labour Community

Luc Triangle, General Secretary of the ITUC, praised the initiative and the recent ILO agreement on living wages as a “major breakthrough,” but cautioned that meaningful implementation will be the true test of success.

“The adoption of an ILO agreement on living wages constituted a major breakthrough to advance the wellbeing of millions of workers and their families worldwide; however, there is major work to be done before the promise of a living wage for all workers is to be realized,” Triangle stated.

From the employers’ perspective, Roberto Suárez Santos, Secretary-General of the IOE, stressed the practical relevance of living wages in the global business environment.

“The concept of a living wage is important and useful for companies operating globally. Its implementation must consider both the needs of workers and their families, and the economic realities. Tackling informality and fostering an enabling environment for enterprises remain central to this agenda,” Suárez Santos explained.

Broad International Support

The ILO’s living wage programme is already backed by governments of the Netherlands and Germany, who have committed to supporting the initiative both financially and politically. In the coming months, the ILO will also seek to expand its network of partners, including governments, private sector entities, development organizations, and civil society.

This collaborative approach underscores the ILO’s commitment to building an inclusive and sustainable wage policy framework that reflects the interests of all stakeholders.

Looking Ahead

As the ILO moves forward with its living wage programme, the organization will focus on:

• Developing country-specific living wage estimates

• Supporting national efforts to reform minimum wage systems

• Promoting the role of social dialogue and collective bargaining

• Providing guidance for enterprises seeking to adopt living wage principles

• Encouraging global supply chains to embrace fair wage practices

With this pioneering initiative, the ILO and its partners are laying the groundwork for a more equitable global economy—one in which workers are not just paid, but paid enough to live.

The success of this programme could reshape wage policies across the world and provide a template for ensuring economic dignity for millions.