ILO (July 2018) This paper reviews proposals for a Universal Basic Income (UBI) in light of ILO
standards. Some UBI proposals have the potential to advance equity and social justice, while
others may result in a net welfare loss. The ILO Social Protection Floors Recommendation
(No. 202) includes a number of principles which are highly relevant to guide the debate on
UBI, namely: (i) adequacy and predictability of UBI benefits to ensure income security, set
at least at the national poverty line; (ii) social inclusion, including of persons in the informal
economy; (iii) social dialogue and consultation with stakeholders; (iv) enactment of national
laws regulating UBI entitlements, including indexation of benefits; (v) coherence with other
social, economic and employment policies, and (vi) sustainable and equitable financing. The
impact of a UBI on poverty and inequality depends on the level of benefits and the source
of funding. Based on these principles, the paper shows that some models of UBI can be in
accordance with ILO standards, while others are not.
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