Indicators and methodologies for wage setting

Effective wage-setting institutions, particularly minimum wages and collective bargaining, can help to ensure a just and equitable share of the fruits of progress to all. But negotiating and determining an adequate level of wages is a difficult undertaking that requires a balanced and evidence-based approach which ensures effective protection for workers and their families as well as the development of sustainable enterprises. This balance is important to ensure that social justice and economic progress go hand in hand. The present project seeks to develop indicators and methodologies that will strengthen the capacity of governments and social partners to negotiate and set adequate wage levels, which take into account both the needs of workers and their families as well as economic factors. The methodologies and tools developed at the global level in this project will be tested in about 4-5 countries which have requested technical assistance from the ILO on wage policies in 2018-19 and for which CPOs have been created under the P&B Outcome 1 (More and better jobs for inclusive growth and improved youth employment prospects), Indicator 1.5 (Number of member states that have formulated or adopted policies, programmes or other measures to improve labour relations, labour market institutions and working conditions). Indicators developed and tested in this project will subsequently be incorporated in the ILO technical toolkit for future ILO support to member states on wage fixing. This activity will be complemented with studies and tools to assess the effect of higher labour cost on production costs at different levels within global supply chains. The dissemination of this information will enable committed industry wide initiatives or enterprises to use their purchasing practices to leverage better wages for the lowest paid workers in their supply chain.

Project symbol

GLO/18/23/NLD

Admin unit

INWORK

Start date

24/10/2018

End date

31/03/2022

Total allocation

964514

Total expenditure

Status

Closed

964514

Development Partners

Netherlands, Ministry of Foreign Affairs

Country/Countries

Global

Outcomes

Outcome 7: Adequate and effective protection at work for all