Policy Area 3A. Labour Conditions and Wage Policies
Summary
Labour conditions and wage policies shape the working lives of paid care workers, the vast majority of whom are women. Many work in low paid, undervalued roles that do not reflect the skill, responsibility or emotional labour required. While Scotland has made commitments to improving pay through the real living wage, most employment rights and wage protections are set at a UK level. This limits Scotland’s ability to drive full reform.
The gender pay gap, low wage floors, and limited access to secure hours continue to undermine financial security for care workers. The statutory minimum wage and social security framework are reserved matters, and current policy does not fully recognise care work as skilled work. Pay erosion, inflation and inconsistent implementation of the real living wage have contributed to financial strain within the sector.
There is clear ambition across Scotland to improve job quality, but the design, regulation and impact of wage policies still fall short of what is needed to create fair, stable and attractive careers in care. These gaps reinforce the undervaluation of women’s work and affect recruitment, retention and wellbeing.
Indicators in this policy area
Indicator 3A.1. Minimum wage
Minimum wage policy is set at a UK level. Scotland has made commitments to go further by promoting the real living wage in adult social care and childcare, but significant gaps remain. Some care workers still earn at or near the statutory minimum, and pay does not reflect the skill, responsibility and emotional labour required. The care workforce is predominantly female, meaning low wage floors have a direct and disproportionate impact on women’s financial security.
View indicator +Indicator 3A.2. Gender pay gap and equal pay for equal work
Equal pay legislation provides a foundation for tackling pay inequality, but the gender pay gap persists in Scotland and continues to affect women working in care. Women dominate the care workforce and are concentrated in lower paid roles that are undervalued and under rewarded. While Scotland has set out commitments to address the gender pay gap, limitations in enforcement, data and policy design mean progress remains uneven.
View indicator +Indicator 3A.3. Right to social security
The right to social security covers a range of protections, including pensions, sick pay and income support when employment is disrupted. Most relevant policies are set at a UK level. Current provisions do not reflect the realities of care work, which is often low paid, part time or insecure.
View indicator +Key challenges
- Wages across the care sector remain low relative to skill and responsibility
- Pay erosion and inflation have reduced the real value of wages
- Statutory wage levels are reserved to the UK Government, limiting Scotland’s scope for change
- Significant disparities remain between public, private and voluntary sector employers
- Some childcare workers are not covered by commitments to the real living wage
- Social security policies do not account for the needs of care workers
- Lack of robust data on equal pay limits progress
- Structural undervaluation of women’s work persists across the sector
Key strengths
- Scotland has committed to paying the real living wage for many care workers
- Policy recognises the need for fair work and improved job quality
- Equal pay legislation and gender pay gap action plans provide a foundation for reform
- Fair Work First guidance encourages employers to adopt fairer wage and employment practices