ILO Launches Living Wage Program

ILO launched its first-ever program to estimate and operationalize living wages, in collaboration with the International Trade Union Confederation (ITUC) and the International Organisation of Employers (IOE). 

“We live in a world where inequalities remain significant, social cohesion is under pressure, and millions of workers cannot afford a decent standard of living for themselves and their families,” says Gilbert Houngbo, Director General, ILO. “It is more important than ever that we take action to ensure that every worker earns a living wage.” 

The program builds on the 2024 tripartite agreement on wage policies, including living wages, and marks a new phase in the organization’s work on income adequacy since its founding in 1919. The initiative will use ILO methodology to estimate living wages in consultation with national statistical offices, employers’ organizations, and trade unions. It aims to support countries in setting wage levels based on reliable data while also strengthening institutions that influence wage-setting, such as minimum wage systems and collective bargaining mechanisms.

A core element of the initiative is the creation of a wage data hub, which will provide empirical evidence to inform wage-setting processes across ILO member states. The hub is designed to address persistent low wages by helping stakeholders identify root causes and enabling more informed policy responses.

Luc Triangle, Secretary General, ITUC notes that the adoption of a living wage agreement in 2024 was a significant step toward improving the conditions of millions of workers globally. However, he emphasizes that implementation remains a challenge. “There is still a long way to go before the promise of a living wage for all workers becomes reality,” he says.

Meanwhile, Roberto Suárez Santos, Secretary General, IOE, highlighted the business relevance of the initiative, particularly for companies operating globally. “The concept of a living wage is important and useful,” he said, adding that implementation should reflect both workers' needs and economic realities. Suárez stressed the importance of tackling informality and creating a conducive environment for businesses.

The program has secured initial support from the Netherlands and Germany. The ILO is seeking to broaden its base of support to include other governments, private sector partners, and interested entities.