India recorded highest average real wage growth in South Asia during 2008-17: ILO report

India recorded the highest average real wage growth in South Asia during 200817, according to a report by the International Labour Organisation (ILO).

Reflecting more rapid economic growth than in other regions, workers in Asia and the Pacific have enjoyed the highest real wage growth among all regions over the period 200617, with countries such as China, India, Thailand and Viet Nam leading the way, the Global Wage Report 2018/19 said.

In South Asia, India led the average real wage growth in 200817 at 5.5 against a regional median of 3.7. Following India was Nepal (4.7), Sri Lanka (4), Bangladesh (3.4), Pakistan (1.8) and Iran (0.4).

The report said that all emerging G20 countries except Mexico experienced significant positive growth in average real wages between 2008 and 2017.

"Wage growth continues in Saudi Arabia, India and Indonesia, whereas in Turkey it declined to around 1 per cent in 2017," it said adding that South Africa and Brazil have experienced positive wage growth starting from 2016 after a phase of mostly zero growth during the period 201216, with negative growth in Brazil during 201516.

Russia suffered a significant drop in wage growth in 2015, again owing to the decline in oil prices, but has since then bounced back with moderate though positive wage growth.

It also noted that a number of countries have recently undertaken measures to strengthen their minimum wage with a view to providing more adequate labour protection.

South Africa announced the introduction of a national minimum wage in 2018, while lawmakers in India are examining the possibility of extending the legal coverage of the current minimum wage from workers in scheduled' occupations to all wage employees in the country, it said.

The report added that wages grew higher and faster in less well-off countries last year than in richer nations, but salaries are still far too low in the developing world. Pay rose by just 0.4 per cent during last year in advanced economies, but grew at over four per cent in developing countries.

"We are seeing some degree I don't want to exaggerate it - of convergence," said ILO Director-General Guy Ryder, noting that "wages in developing countries are increasing more quickly than those in higher-income countries."
"The wages of both men and women also tend to be lower in enterprises and occupations with a predominantly female workforce."