Wages in industrialized countries will fall 0.5 per cent next year due to the economic crisis, although on a global level, salaries will still grow by up to 1.1 per cent, the ILO said today.

"In 2009, wages will in fact decline by 0.5 per cent in industrial countries and grow by no more than 1.1 per cent globally," said the International Labour Office's latest Global Wage Report.

The global growth will come thanks to "emerging countries whose economies are undergoing a slowdown but which are continuing to grow," said Manuela Tomei, who is in charge of the ILO's programme on employment conditions.

But the ILO warned that it was clear that the economic slowdown would bite into real wages of most workers, with the lowest paid to be hardest hit.

"For the world's 1.5 billion wage-earners, difficult times lie ahead," said Juan Somavia, ILO Director-General.

"Slow or negative economic growth, combined with highly volatile food and energy prices, will erode the real wages of many workers, particularly the low-wage and poorer households. The middle classes will also be seriously affected," he added.

To combat a global recession, the ILO warned against lowering companies' costs by cutting workers' wages.

Rather, it called on governments to protect the spending power of consumers through measures such as raising minimum wages.

"In the present context, governments are encouraged to display a strong commitment towards protecting the purchasing power of their populations and hence stimulating internal consumption," said the ILO.

"The levels of minimum wages should be increased wherever possible to protect the purchasing power of the most vulnerable workers," it added.