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Domestic Workers' Wages Rise, But Growth Remains Sluggish: ILO

A new International Labour Organisation report shows wage improvements for domestic workers across multiple nations, though growth rates continue to lag behind broader economic trends. The findings also highlight a gradual shift toward formalisation in the domestic work sector.

LSN India · 27 October 2026

Domestic Workers' Wages Rise, But Growth Remains Sluggish: ILO

Domestic workers have experienced wage increases in recent years, according to data compiled by the International Labour Organisation, though the pace of growth remains slower than desired. The global agency's analysis reveals a mixed picture of labour market conditions for one of Asia's largest employment sectors, where millions remain engaged in household service roles across India and neighbouring countries.

While remuneration has improved, the ILO findings underscore persistent challenges in translating economic growth into meaningful wage advancement for domestic workers. The report indicates that despite economic expansion in several nations, wage growth for this workforce has not kept pace with inflation or productivity gains in other sectors.

A significant development noted in the ILO assessment is the gradual reduction of informality in domestic work arrangements across numerous countries. Greater formalisation—including written contracts, regulated working hours, and social security coverage—represents progress toward stronger worker protections and clearer employment relationships in a sector historically characterised by informal arrangements and limited legal safeguards.

The findings come as policymakers across South and Southeast Asia grapple with improving conditions for domestic workers, a largely female workforce that remains vulnerable to exploitation and wage suppression. Enhanced formalisation efforts are seen as crucial to ensuring fair compensation and workplace dignity for millions engaged in this essential but often undervalued occupation.