According to the International Labour Organization (ILO), around 50 percent of all worldwide salaries are allocated to only 10 percent of employees, and 50 percent of the lowest earning employees are paid just 6.4 percent. The lowest earning workers consisting of about 650 million employees, receive under 1 percent of total pay. The ILO study took the most recent available data (incomes from 2004 to 2017) to find that this figure has hardly changed at all in the last 13 years.
The rich get richer and the poor get poorer
A top 10 percent employee earns roughly $7,400 per month, and an employee from the bottom 10 percent receives a ghastly $22. An economist from the ILO statistics department, Roger Gomis, says,”The majority of the global workforce endures strikingly low pay, and for many, having a job does not mean having enough to live on. The average pay of the bottom half of the world’s workers is just $198 per month and the poorest 10 percent would need to work more than three centuries to earn the same as the richest 10 percent do in one year.”
The worldwide earnings made by the top 10 percent has decreased since 2004 from 55.5 percent to 48.9 percent, however, in some counties such as the UK, pay inequality is rising. In the United Kingdom, many of the bottom 50 percent have endured the biggest loss of earnings from 2004 to 2017, meanwhile the rise in pay for the top earners is a lot more prominent than in Germany or the United States.
Poorer countries typically see significantly higher levels of pay inequality than the wealthier ones. The bottom 50 percent of employees in the sub-Saharan Africa earns just 3.3 percent of total pay, while this same group in the European Union gets just shy of 23 percent of total income.
The ILO made it clear that in high-income countries such as the United Kingdom, Germany, and the United States, salaries have decreased for the middle and lower- middle class in the last 13 years, while the top earners’ incomes have increased.