You are here: HomeAfrica2020 12 23Article 403031

Africa Business News of Wednesday, 23 December 2020

Source: punchng.com

28 million Africans earning below minimum wage – ILO

File photo: ILO logo File photo: ILO logo

The International Labour Organisation has said 28 million workers in Nigeria and other African countries are earning less than the minimum wage.

The ILO, in its Global Wage Report 2020-2021, said 266 million wage-earners around the world, representing some 15 per cent of all wage employees, earned less than the minimum wage.

“In terms of regional differences, the proportion of workers earning less than the minimum wage is highest in Africa at an estimated 21 per cent or 28 million workers,” it said.

According to the report, in Africa, minimum wages exist in 47 of the region’s 54 countries. Notable exceptions include Egypt and Ethiopia.

It said the share of employees earning the minimum wage or less in Africa was estimated at 24 per cent, translating into 32 million employees.

The ILO said, “The region with the largest absolute number of people in this situation is Asia and the Pacific, where an estimated 134 million wage earners (16 per cent of the region’s total) receive less than the minimum wage.

“In the Americas, the corresponding share is estimated at 17 per cent (58 million employees), while in Europe and Central Asia, it stands at around 13 per cent (45 million) of the region’s employees,” it added.

The ILO said the unprecedented global economic and labour market crisis triggered by the COVID-19 pandemic was likely to have hurt vulnerable groups and put many families at risk of falling into poverty.

“Consequently, the threat of increased poverty and inequality is more than ever a concern for social justice. It is, therefore, crucial to strengthen measures aimed at protecting workers at risk and to design policies that prevent poverty and inequality levels from rising further,” it said.

The organisation said adequate minimum wage systems could serve as a particularly valuable tool.

“The primary objective of a minimum wage is to protect workers against unduly low pay. However, many countries have recognised the additional potential of a minimum wage to promote equality by increasing workers’ remuneration and improving the living conditions of those at the lower end of the wage distribution,” it added.

According to the report, in the current exceptional circumstances, it appears timely for governments and the social partners to review recent experiences with minimum wages.

It said the central role of social dialogue in the setting of minimum wages had acquired particular urgency in the current situation.