'Wage inequality among middle to top earners is higher than within the lower half of the wage distribution'
Wage inequality went down in about two-thirds of all countries since 2000, with the most significant decreases logged among low-income countries, according to the International Labour Organisation (ILO).
The ILO's Global Wage Report 2024-25 revealed that wage inequality went down at an average rate that ranged from 0.5 to 1.7% annually, depending on the measure used.
Wage inequality refers to the comparison between the incomes of high- and low-wage earners.
According to the report, low-income countries reported a more significant drop in inequality after recording an average annual decrease from 3.2% to 9.6% in the past two decades.
Wealthier countries, on the other hand, reported a slower pace in reducing wage inequality, with the decreases more significant among wage workers at the upper end of the pay scale.
The report found that upper-middle-income countries saw an average annual decrease between 0.3% and 1.3%, while it was between 0.3% and 0.6% in high-income nations.
The report also noted that despite this progress, high levels of wage inequality remain across the world.
"The level of wage inequality differs significantly across countries, with low-income countries displaying, on average, the highest level of wage inequality and high-income countries the lowest," the report read.
In low-income countries, the report said almost 22% of wage workers are paid less than half of the median hourly wage of their country. But this declines to:
"On average, wage inequality among middle to top earners is higher than within the lower half of the wage distribution," the report read.
Gilbert Houngbo, ILO director-general, said while the decline in wage inequalities is good news, they are still "too many disparities."
"We still have too many millions of people living in low wages," Houngbo said in a statement.
"So it's important for us to continue pushing for a living wage. It's important that every worker, every household, earn a living wage so they can have a decent life."
