Shaping the living wage agenda: Asia-Pacific’s call to action

Kaori Nakamura-Osaka, ILO Assistant Director-General and Regional Director for Asia and the Pacific

Asia and the Pacific is home to the world’s largest workforce. In recent years, the region has demonstrated remarkable resilience, with real wages (inflation-adjusted pay) continuing to rise even as they declined in many other parts of the world. 

But this only tells part of the story. Different countries have very different wage dynamics, and within the region there are still 1.3 billion vulnerable workers – including women, migrants, workers with disabilities and those in informal jobs - struggling with low pay, poor working conditions and rising costs of living. An increase in average wages does not automatically translate into higher purchasing power for these workers and, even when it does, it may still fall short of ensuring a decent standard of living. 

Minimum wages, which are legally binding wage floors, are designed to protect workers against unduly low pay.  They are adjusted from time to time but often do not automatically guarantee a minimum standard of living or provide remuneration sufficient to meet the needs of workers and their families. This is where the concept of a living wage becomes transformative, shifting the focus to whether workers earn enough to afford a decent standard of living for themselves and their families. It is rooted in the International Labour Organization (ILO) Constitution and consistent with the spirit of the Universal Declaration of Human Rights. A living wage can be achieved through inclusive wage-setting processes based on social dialogue between government, employers and workers, and collective bargaining, while also addressing the root causes of low pay.

In recent years, living wage initiatives have gained visibility and momentum. While these initiatives have helped raise awareness and encouraged progress in some areas, they often operate in a fragmented manner and do not always align with national wage-setting mechanisms, and adequately consider local economic realities, or ensure full and effective participation of workers’ and employers’ representatives. 

The latest Global Wage Report, 2024-25 highlights persistent challenges in wage growth and wage inequality. Since the turn of the century, wage inequality has narrowed in the majority of countries, but this is not universal, and inequality remains unacceptably high. Over 90 per cent of low-wage workers in the region are in informal employment. Women and migrants continue to be heavily concentrated among the low-paid.

Recognizing these challenges, the ILO took a historic step in March 2024, when its Governing Body endorsed an agreement on living wages. One month later, the ILO launched its first-ever global programme on living wages, focusing on two major goals: supporting the production of reliable living wage estimates and a “wage data hub” as well as operationalizing living wages by strengthening wage-setting systems so that living wages can become a reality.

Now, it is Asia-Pacific’s turn to lead. On 23 September 2025, ILO and Government of Sri Lanka will host the first Regional Living Wage Dialogue under the Global Coalition for Social Justice. Governments, employers’ and workers’ organizations, the private sector, and international partners will gather in Colombo to exchange ideas and shape solutions.

A major highlight will be the launch of the Asia-Pacific Digital Repository for Minimum Wages - a pioneering online platform that consolidates official minimum wage data and related indicators to support transparent, consistent, and informed approaches of evidence-based social dialogue for setting adequate and balanced wages.

To make real progress, the region must focus on five priorities: first, strengthen wage-setting institutions to ensure genuine tripartite dialogue between government, employers and workers, and collective bargaining; second, striking a balance between fairness and sustainability, by ensuring wages meet the needs of workers and their families while reflecting economic realities; third, leverage data to guide informed  and effective decisions; fourth, align living wage initiatives so that private and civil society efforts connect with ILO principles and national frameworks; and fifth, tackle inequality and the root causes of low pay by reducing informality, promoting decent jobs and boosting productivity growth, while ensuring that all workers receive a fair share of the fruits of economic progress.

Asia and the Pacific stand at a turning point. With its vast workforce and role as a global economic engine, the region has the opportunity to demonstrate that living wages are not just aspirational, but achievable through a systematic approach grounded in social dialogue.

If Asia-Pacific succeeds, the impact will extend far beyond the region. It will set a global example, showing that living wages are the foundation of sustainable growth, decent work, poverty and inequality reduction and upholding social justice and dignity for every worker.