In a landmark move to promote fair pay worldwide, the International Labour Organization (ILO), together with the International Trade Union Confederation (ITUC) and the International Organization of Employers (IOE), has launched the first ever global programme to estimate and implement living wages.

The initiative, unveiled on Wednesday, is the first of its kind in the ILO’s history since its founding in 1919. It aims to provide a practical framework for establishing and promoting living wages that allow workers and their families to lead dignified lives.

The programme was officially launched by ILO Director-General Gilbert F Houngbo, ITUC General Secretary Luc Triangle and IOE Secretary-General Roberto Suárez Santos.

It followed the 2024 tripartite agreement on wage policies, which includes a commitment to living wages as a key pillar.

The ILO said that living wage estimations would be conducted using its own methodology and data provided by national statistical offices, in collaboration with both employers’ and workers’ organisations.

‘In a world where inequalities are still vast, social cohesion is under strain, and millions of workers struggle to meet basic needs, it is more important than ever to ensure that every worker earns a living wage,’ said Mr Houngbo.

The programme will not only estimate living wages but also work to strengthen wage-setting institutions, such as collective bargaining frameworks and minimum wage systems. It will further investigate the underlying causes of low pay and propose practical reforms.

To facilitate this, the ILO will establish a ‘wage data hub’ to support evidence-based wage-setting processes across its Member States.

Speaking at the launch, Luc Triangle described the initiative as a vital step towards improving workers’ livelihoods globally.

‘The adoption of an ILO agreement on living wages constituted a major breakthrough for the wellbeing of millions of workers and their families. However, significant work lies ahead if we are to fulfil the promise of a living wage for all,’ he said.

Roberto Suárez Santos emphasised the programme’s importance for businesses operating in global markets.

‘The concept of a living wage is important and useful for companies operating globally. Its implementation must consider both the needs of workers and the economic realities. Tackling informality and fostering an enabling environment for enterprises are central to this agenda,’ he added.

The programme is currently supported by the governments of the Netherlands and Germany.

The ILO is also seeking additional backing from other governments, the private sector, and interested stakeholders.