Social equity & labour

Minimum Wage

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Definition

The minimum wage is the minimum amount of remuneration an employer is required to pay wage earners for work performed during a given period, which cannot be reduced by collective agreement or individual contract (ILO definition). Minimum wages exist in more than 90% of ILO member states, and the Minimum Wage Fixing Convention, 1970 (No. 131) requires ratifying states to maintain machinery for setting and periodically adjusting them.

References

ILOHow to define a minimum wage

definition, >90% coverage, purpose

ILOInternational Labour Standards on Wages

Convention No. 131 requirements

Overview

What it means

A minimum wage is a legal floor, not necessarily an adequate one: where it falls below the cost of living, full-time workers remain in poverty — the gap addressed by living wage campaigns. ILO guidance requires balancing workers' needs with economic factors and consulting social partners.

How it is used

Governments set statutory rates; businesses must comply across operations and (increasingly) verify compliance in supply chains; ESG frameworks track wage levels against both statutory and living-wage benchmarks.

Why it matters

Wage floors are a first line of defence against exploitation and in-work poverty, making them foundational to decent work (SDG 8) and reduced inequality (SDG 10).