Find out what’s the minimum wage by country and what has an impact on how much people earn!
Minimum wage regulations are a fundamental aspect of labor markets worldwide, designed to protect workers from exploitation and ensure a basic standard of living. However, many things can impact on the minimum wage, so find out how much it is by country.
Get to know how different laws, economic conditions, cost of living, and labor market structures can significantly reflect on how much people earn. Also, if you want to check out more financial tips on our website, you can click on this link!
What Is A Minimum Wage?
It is the legally mandated lowest hourly, daily, or monthly wage that employers must pay to their employees. This wage floor is set by governments as a protective measure to ensure that employees earn enough to cover basic living expenses. Its goal is to balance the needs of workers with the economic realities faced by employers. However, the level at which the minimum wage is set can vary depending on the country, region, or even industry. Here are some factors that influence these rates in different countries:
- Economic Conditions: countries with stronger economies often have higher minimum wages. This is because they can afford to pay workers more without causing significant inflation or unemployment;
- Cost of Living: areas with high living costs, such as major cities, tend to have higher minimum wages to ensure that workers can afford basic necessities;
- Labor Market Conditions: the supply and demand for labor in a country or region can also affect minimum wage levels. In areas where there is a shortage of labor, the rates may be higher to attract workers;
- Political and Social Factors: governments may set higher minimum wages as a result of political pressure or to address social inequalities. Public opinion and lobbying by labor unions can also influence wage policies.
Minimum Wage By Country
Top 10 Countries With The Highest Minimum Wages
1. Luxembourg
Luxembourg stands out as the country with the highest minimum wage globally. Skilled workers over the age of 18 earn €3.085,11 per month, approximately US$3,429. However, this figure is lower for unskilled workers and younger employees:
- Unskilled workers aged 18 and over: €2.570,93 per month;
- Workers aged 17 to 18: €2.056,74 per month;
- Workers aged 15 to 17: €1.928,19 per month.
2. Australia
- Adults over the age of 21: AU$24.10 (US$16,23) per hour or AU$915.90 (US$616,72) per week
3. Netherlands
In the Netherlands, the minimum wage is adjusted based on age. For workers aged 21 and over, the minimum wage is €13.27 (US$ 14.75) per hour or €2,317.83 (US$2,576.61) per month. Younger workers earn less:
- Age 20: €10.62 per hour (€1,596 per month);
- Age 19: €7.96 per hour (€1,197 per month);
- Age 18: €6.64 per hour (€998 per month);
- Age 17: €5.24 per hour (€788 per month);
- Age 16: €4.58 per hour (€688 per month);
- Age 15: €3.98 per hour (€599 per month).
4. United Kingdom
The United Kingdom operates two distinct minimum wage structures: the National Living Wage and the National Minimum Wage. For workers aged 21 and older, the National Living Wage is currently £11.44 (US$14,90) per hour. The National Minimum Wage applies to younger workers:
- Ages 18 to 20: £8.60 per hour;
- Ages 16 to 17: £6.40 per hour;
- Apprentice Rate: £6.40 per hour;
- Accommodation Offset: £9.99.
5. New Zealand
New Zealand offers a minimum wage of NZ$23.15 (US$14,23) per hour for workers aged 16 and older. For those in training or starting a new job, the minimum wage is slightly lower at NZ$18.52 (US$11,39) per hour.
6. Ireland
Ireland provides an hourly minimum wage of €12.70 (US$14,11), translating to about €2,134 (US$2.370,96) per month for workers aged 20 and older. Younger workers receive lower wages, with rates decreasing according to age:
- Age 19: €11.43 per hour (€1,920 per month);
- Age 18: €10.16 per hour (€1,707 per month);
- Under 18: €8.89 per hour (€1,494 per month).
7. Germany
Germany has an hourly minimum wage of €12.41 (US$13,79), which equates to approximately €2,085 (US$2.317,02) per month. This wage level is regularly reviewed to ensure it keeps pace with the cost of living and inflation.
8. Belgium
Belgium’s minimum wage is set at €2,029.88 (US$2.255,28) per month. The wage rate is periodically reviewed and adjusted to align with economic conditions and inflation, ensuring workers maintain a decent standard of living.
9. France
In France, the minimum wage is set at €11.65 (US$12,95) per hour, translating to €1,766.92 (US$1963,85) per month. This wage level is reviewed regularly to ensure it meets the living standards required by workers in the country.
10. Canada
Canada recently established a federal minimum wage that applies nationwide for employees in federally regulated industries, such as banking and transportation. As of now, the federal minimum wage is CA$17.30 (US$12,69) per hour.
10 Countries With The Lowest Minimum Wages
1. Nigeria
Nigeria has one of the lowest minimum wages globally, at approximately NGN 70,000 (US$44,44) per month. This wage is often insufficient to meet the basic living expenses in the country.
2. India
India’s national minimum wage is set at INR 178 (US$2.16) per day, or INR 5340 (US$65) per month. This amount is a floor-level wage and it varies depending on the industry, skill level, and location.
3. Uzbekistan
- Monthly Minimum Wage: UZS 1,050,000 (US$82,97)
4. Pakistan
- Unskilled Workers: PKR 32,000 (US$114,87) per month;
- Skilled Workers: PKR 33,280 (US$119,47) per month.
5. Kazakhstan
Monthly Minimum Wage: KZT 85,000 (US$178,90)
6. Ukraine
Monthly Minimum Wage: UAH 8,000 (US$193,84)
7. Armenia
Monthly Minimum Wage: AMD 75,000 (US$194,72)
8. Philippines
The minimum wage in the Philippines varies by region, ranging from Php 100.00 (US$1,77) to Php 750.00 (US$13,29) per day
9. Vietnam
Vietnam applies two minimum wage structures: a common monthly minimum wage for public employees at VND 2,340,000 (US$93,88), and a Regional Minimum Wage for private employees ranging from VND 3,450,000 (US$138,42) to VND 4,960,000 (US$199,00) per month.
10. Indonesia
Indonesia’s monthly minimum wage varies by province, from IDR 2,036,947 (US$131,83) in Central Java to IDR 5,067,381 (US$327,95) in DKI Jakarta. These rates reflect the diverse economic conditions across the country.