Obviously, the economy of the world had been severely dealt with as a result of the recent Coronavirus pandemic outbreak. Hence, if you will be plying your trade in another part of the world, you must read this article on the countries with the highest and lowest minimum wage in the world.
To begin with, the minimum wage can be best described as the lowest salary or wage payment in exchange for the service rendered by the employees which employers are legally bound to pay in consideration for the work done.
Most importantly, towards the end of the last century, most countries of the world had introduced the minimum wage and they ensured it is properly legislated so that it can have a legal effect on its opponents.
Understanding The Concept Of Minimum Wage
After the intervention of the International Labour Organization (ILO) on the implementation of the minimum wage in the world, over 90 countries accept and implement it in line with the International Labour Organization guiding principles.
Some of these countries pay higher minimum wages compare to their counterparts far beyond the standard rules that were set by the Organization (ILO). Other poor countries with a fragile economy, fewer industries as well as low job opportunities couldn’t meet up with the ILO minimum wages standard.
And that is why we will be discussing this topic under two segments. The first part will be on the countries with the highest minimum wage in the world and the other part will take care of the list of the countries with the lowest minimum wage in the world.
But before then, be enlighten that employers are, in a worst-case scenario, obliged to pay the exact amount set by the government as the minimum wage standard of a certain country or something above it.
That is to say, employers cannot pay less than the amount set by the government as the minimum wage of such a country.
So whether you are running your business in your country or thinking of migrating down to another country, it’s important you know some of the countries of the world minimum wage rates.
This is vital because it is illegal and capital offense for government agencies or private companies to pay their staff below the minimum wage standard.
The permitted minimum wage by the enabling law can be set through a resolution, a pay committee, compensation board, modern work court, etc.
Given the above information and facts, it is high time we take a look at some of the modern developed countries with the highest minimum wage in the World.
The highest minimum wage in the world
By and large, you must note that a lot of factors were put into consideration in the course of calculating each of the below country’s minimum wage.
One of these is the cost of living, thus, endeavor to consider the cost of living in your destination country before taking any high-paying minimum wage job.
According to recent research, Luxembourg stands as the first country on the list of the countries with the highest minimum wage in the world. The standard minimum wage set by the country is $13.78 per hour.
In Luxembourg, their standard minimum wage rises by 20% for some class of individuals (usually 18 years and above) termed by skilled workers and at the same time falls by 20-25% for the adolescent workers who are usually between the range of 17 to 18 years old.
The standard minimum wage set by the government of Australia is US$12.10 per hour and such makes it the country with the second-highest minimum wage structure for workers in the world.
The payment of $12.10 per hour to workers in Australia is their actual take-home pay, without recourse to the gross income payment after taxation.
That being said, in Australia, employers are obliged to pay this standardized minimum wage in line with the country governing principles, and whosoever that default it shall face the wrath of the law.
According to findings, France is the third country with the best and highest minimum wage structure in the world. In France, an average employee earns a minimum wage of nothing less than €9.88 per hour. And when estimated, this can be sum up to €1,498.47 per month.
4. NEW ZEALAND
New Zealand is one of the countries of the world with a self-sustaining economy that fits highly established migrants and it is equally the best destination for any business-minded person looking for a greener pasture.
The average worker in this country receives $10.10 per hour as their minimum wage. Therefore all employers are under obligation to pay their workers this standardized minimum wages or something above the prescribed range.
There and then, New Zealand enjoys a gentle better ranking in terms of safe haven compared to other EU countries because the cost of living there and the taxation are relatively low.
Without any doubt, Germany is detailed as the powerhouse of the European Union economy and it is no surprise that it’s ranked as the fifth country paying the highest minimum wage in the world.
An average worker in Germany earns $10.90 per hour and base on the activeness and economic redeem of the country, such minimum wage per hour is sufficient enough to guide any average worker in Germany to lead a decent life.
This is so because the government of Germany is terrifically known for providing lots of welfare and free benefits to all of its citizens.
6. THE NETHERLANDS
According to the World Happiness Report released by the United Nations, the Netherlands is ranked as the sixth-best nation in the World paying its average workers the best and highest minimum wage.
An average employee in the Netherlands receives $50,670 as an annual salary when estimated, and the minimum wage stands at $5.78 per hour.
Moreso, all citizens, and inhabitants of the Netherlands enjoy a balance public education system, adequate infrastructures, universal basic healthcare, and lots more thereby making life easier and more comfortable for average salary earners.
The Belgian government also joined the league of the countries with a recognized and standardized average minimum wages for workers in a bid to better up the life and living of the average employees.
In Belgium, the recognized minimum wage for workers is $10.40 for an hour of work, and every month, they’re paid $1,673. Therefore, all Belgian employers are under obligation to meet these wage regulations. Any employer that is caught living off his workers will face legal action in the country.
What is more, Belgian employees who are over 22 years of age earn remunerations that are slightly above the standard minimum wage set by the government.
8. UNITED KINGDOM
The United Kingdom minimum wage and salary structure are quite complicated. Apprentice of 16 – 18 years earn $4.37 per hour as minimum wage same as employees of 19 years of age.
Employees of 18-20 years receive a minimum wage scale of $6.99 per hour, workers of 21-24 years earn $8.80 per hour and all other employees above the age of 25 receive $9.36 as minimum wage per hour.
Ireland is one of the countries under the auspices of the European Union with a smaller economy and yet, an average worker in the country collects $9.60 per hour as minimum wage. Beautiful, isn’t it?
Canada is ranked as the 10th country in the world with the best and highest minimum wage structure in the world. Being a recognized member of the Common Wealth, Canada is extremely endowed with several Natural resources.
In January 2016, the minimum wage set by the Canadian government falls between the range of C$10.85 – C$14 per hour, giving every province the autonomy to decides the exact minimum wage to pay its workers.
In Japan, the minimum wage for an average worker is 906 Yen per hour and when converted to dollars, it is $8.36.
12. UNITED STATES OF AMERICA
The United States of America is ranked as number 12th on the list of the countries with the highest minimum wage in the world. An average worker in the States earns $7.25 per hour, although the minimum wages vary from state to state.
13. SOUTH KOREA
In South Korea, an average employee receives the sum of 6.84 per hour as minimum wage and when estimated, each average worker earns $19,880.75 as an annual salary. Thus, making the country the 13th country on the list.
According to World Population Review, 46,745,216 or thereabouts people are living in Spain, and the average wages of a Spanish employee as set by the government is $5.83. When estimated, each Spanish worker is entitled to $14,289.76 per year as minimum wage.
Last on the list of the countries paying their staff the highest minimum wage in the world is Portugal. On average, a Portuguese employee earns $5.76 per hour as a minimum wage and $9,584.72 when estimated on annual basis.
Lowest Minimum Wage In The World
Having discussed the top 15 countries with the highest minimum wage payment in the world, it’s therefore important to highlight the countries with the lowest minimum wage in the world.
This African country is one of the nations of the world with the lowest minimum wage payment. On average, a Moroccan civil servant earns $310 per month, while private employees receive the minimum wage of $265 as a monthly salary.
2. SOUTH AFRICA
With over 50 million people inhabiting South Africa, the country’s minimum wage when approximated is $277 per month. This paycheck is so low and poor when compared to what is obtainable in some of the countries mentioned earlier.
The third on the list of the countries that pay their employees the lowest minimum wage in the world is Iran. Iran’s minimum wage is $261 or thereabouts per month and that’s when it’s officially exchanged into US Dollar.
There are many job openings in Malaysia with young minds working on full-time job opportunities. Hence, the obtainable minimum wage in the country is $243 per month, although it’s low but yet, better than what some countries offer.
The obtainable minimum salary in Albania is one of the lowest minimum wages for a European country. Employers pay their employees $210 on average as a monthly salary. Such an amount is not enough for many workers to lead a prudent life.
Thanks to their undervalued currency and the low cost of living, the minimum wage an average worker earns in Egypt is $174 per month.
Being one of the countries with the lowest minimum wage in the world, employers pay their workers a minimum wage of $144 per in Ethiopia.
Ukraine is a promising country slowed down by bad governance and corruption. But despite its unappealing state of things, and being one of the European Nations with the lowest minimum salaries, an average Ukrainian receives $140 per month and they’re able to maintain life with it.
The average minimum wage in Pakistan is $113 per month, thereby ranking it 9th on the list of countries with the lowest minimum wage.
The obtainable minimum wage in Congo is $100 per month and this is even better compared to what some other African Nations offer.
The minimum wage in this country is $68 per month and as low as this minimum salary is, the average employees in the country are putting in their best to ensure that they lead a decent life with their families.
Nigeria is trailed by rotten politics, corruption, and bad governance as such, it records one of the lowest minimum wages in the world. On average, the federal civil servant earns $79 per month as a salary.
The instability of the Venezuelan currency made it minimum wage very difficult to calculate. At an unofficial rate, the obtainable minimum wage in Venezuela is currently $20 per month.
14. Bangladesh 19
Bangladesh comes before Cuba on the list of countries with the lowest minimum wage in the world. On average, the minimum wage obtainable in Bangladesh is $19 per month.
According to reports and findings, Cuba is ranked last as the country with the lowest minimum wage. An employee in Cuba earns the minimum salary of 225 Cuban pesos which is equivalent to $9 per month. Although the government of the country supplies every Cuban employee with free foodstuffs every month.
Minimum wages were introduced purposely to put a stop to the worker’s exploitation by sweatshop owners before it was later seen and used as a way to help families with lower wages or monthly income lead a prudent life.
There and then, most of the countries with the highest minimum wage in the world were obliged to do so by a particular law in force in the country, and such is what is lacking in most of the Nations with the lowest minimum wage in the world.