Home / Knowledge / News / Textiles / Pandemic to put massive downward pressure on wages: ILO

Pandemic to put massive downward pressure on wages: ILO

Dec '20
Pic: Shutterstock
Pic: Shutterstock
Informal workers’ wages have witnessed steeper cuts than formal workers in recent times even while countries have deferred the minimum wage hike in the times of COVID-19 pandemic, according to a recent report by the International Labour Organisation (ILO), which said formal workers’ wages have been cut by 3.6 per cent, while informal workers have seen a 22.6 per cent cut.

In two-thirds of countries for which official data was available, the crisis is likely to inflict massive downward pressure on wages in the near future, ILO said. The wages of women and low-paid workers have been disproportionately affected by the crisis.

“It is worth noting that in other countries, delayed increases or freezes in minimum wages because of the COVID-19 crisis have taken place at the local or sectoral level,” the United Nations organisation said in its Global Wage Report 2020-21, citing the example of Punjab, where it said the local government reversed its order announcing a minimum wage increase.

In countries where strong measures were taken to preserve employment, the effects of the crisis were felt primarily as falls in wages rather than massive job losses, it said.

The crisis has also affected lower-paid workers severely. Those in lower-skilled occupations lost more working hours than higher-paying managerial and professional jobs. Using data from the group of 28 European countries the report shows that, without temporary subsidies, the lowest paid 50 per cent of workers would have lost an estimated 17.3 per cent of their wages.

Without subsidies, the average amount of wages lost across all groups would have been 6.5 per cent. However, wage subsidies compensated for 40 per cent of this amount, ILO said.

Hailing the provisions of Code on Wages in India, ILO said its implementation will reduce the number of rates to a minimum of four and a maximum of 12 per state and is intended to make the wage-setting process in India more efficient and dynamic.

According to ILO, in India each state used to set different minimum wage rates for employees in each occupation and in ‘scheduled’ employment.

This gave rise to over 1,915 occupational minimum wage rates across state spheres and 48 minimum wages in the central sphere, it said, citing the Economic Survey 2019–20 which covered two thirds of all wage earners.

“The implementation of the Code on Wages will reduce the number of rates to a minimum of 4 and a a maximum of 12 per state and is intended to make the wage-setting process in India more efficient and dynamic,” it added.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Fashion | On 20th Jan 2021

UK shoppers face delays, extra fees on EU fashion items

UK shoppers are reportedly facing delays and extra fees of up to £5...

Pic: Shutterstock

Textiles | On 20th Jan 2021

German economy shrinks by 5% in 2020: govt

Germany's economy shrank by 5 per cent last year, following ten years ...


Retail | On 20th Jan 2021

UK high streets may lose 400,000 jobs post COVID-19: KPMG

Main shopping streets in UK may further lose more than 400,000 jobs...

Interviews View All

Claudia Kersten, Global Organic Textile Standard

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Lukas Hartmann,

Lukas Hartmann

Intex Consulting GmbH is a completely integrated enterprise resource...

Michael Van Den Dolder,

Michael Van Den Dolder

Family-owned German textile machinery manufacturer Trützschler operates...

Nitesh Mittal,

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

January 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search