In this article, we will look at 20 countries with the highest minimum wage in the world. We will also discuss the companies that provide fair wages in these times of inflationary surge. If you want to skip our detailed analysis, head straight to 5 Countries With the Highest Minimum Wage in the World.
July 2023 marked the fourteenth year since the US raised its minimum hourly wage to $7.25. As per Economic Policy Institute, workers who get paid the federal minimum wage of $7.25 earn nearly 30% less in inflation-adjusted terms than their counterparts earned in July 2009, indicating an increase in the cost of living over the past 14 years. In 2022, research claimed that around one-third, equating to 52 million labor force employees, earn less than $15 per hour in the U.S.
According to Robert Wood Johnson Foundation, updating the minimum wage to $15 per hour can improve the lives of almost 7.6 million people in the United States. Moreover, as per the costs-of-living data provided by the Massachusetts Institute of Technology, the current federal minimum wage cannot suffice the expenditures of any full-time worker in any U.S. state. However, with the liberty to set their wages, nearly 26 states across the U.S. have adjusted the hourly wages to a higher level following inflation in 2023. The state with the highest minimum wage is Washington, D.C., with a minimum wage of $15.74 per hour. In contrast, the state with the lowest minimum wage in the U.S. is Georgia, with an official minimum wage of $5.15 per hour.
Despite a low minimum wage, the United States has proved to be home to some very high-paying jobs. According to the US. Bureau of Labor Statistics, some of the high-paying jobs in the U.S. include the jobs of healthcare professionals like anesthesiologists, gynecologists, neurologists, surgeons, etc., earning up to $208,000 annually on average, followed by the jobs of pilots and flight engineers. You can also check out our article on the highest-paying jobs in the US.
It is also worth noting that even in times of inflation, companies like Alphabet Inc (NASDAQ:GOOG), Walmart Inc (NYSE:WMT), and Microsoft Corporation (NASDAQ:MSFT) have proved to the leaders and game-changers in retaining top talent and providing market-competitive salaries.
Alphabet Inc is known to foster the ideas of creativity, employee mobility, and the well-being of an employee in all aspects, including physical, mental, and financial. Alphabet Inc (NASDAQ:GOOG) not only provides regular bonuses, equity refresh opportunities, and regional retirement plans but also gives generous market-competitive compensation.
For example, the average annual salary of an accountant in the United States in 2021 was $77,250, whereas the average annual salary of an accountant at Alphabet Inc (NASDAQ:GOOG) is $143,772. Moreover, benefits like life insurance, an on-site fitness gym, free breakfast, and an on-site healthcare facility make Alphabet Inc (NASDAQ:GOOG) an even more lucrative option.
On the other hand, the salary packages and benefits like health insurance, retirement plans, and paid leaves provided at Adobe Inc (NASDAQ:ADBE), make it equally attractive for individuals aiming to work in an employee-friendly company. In 2021, Fortune Magazine recognized Adobe Inc (NASDAQ:ADBE) as the 21st best place to work for the 6th time in a row.
This global recognition accolades Adobe Inc (NASDAQ:ADBE) as the best workplace in the United States and in countries like Japan, Asia Australia, Germany, and the United Kingdom. This acknowledgment results from an inclusive culture, investment in an employee’s growth, and benefits like, healthcare insurance, performance-based bonuses, and high salaries. Interestingly, the average annual salary of a data scientist in the United States in 2021 was $100,910, whereas the average annual salary of a data scientist at Adobe Inc (NASDAQ:ADBE) in the United States is $219,725.
Similarly, with a labor force of over 1.6 million employees, Walmart Inc (NYSE:WMT) has recently revised its hourly wages to more than $17, raising the wages of nearly 360,000 employees. The increase in the new minimum wage at Walmart Inc (NYSE:WMT) has resulted in employees enjoying the minimum hourly wage between $14 to $19, up from the previous range of $12 to $18. Furthermore, with many companies laying off their staff, Walmart Inc (NYSE:WMT) is currently hiring for over 30,000 jobs.
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Methodology
To list the countries with the highest minimum wage in the world, we obtained data on minimum wages from the official government websites of the respective countries. Since minimum wages for different countries were found in different currencies, we converted each minimum wage into USD to make the list reader-friendly and thorough. We made a comprehensive list of 30 such countries and the 20 Countries with the highest minimum wage were eventually selected. The list is in ascending order of high minimum wages.
Note: There might be minor differences in the calculated minimum wages due to the fluctuating exchange rates in currency.
Here is a list of 20 countries with the highest minimum wage in the world
20. Portugal
Minimum Hourly Wage: $4.86
Currently, the minimum wage in Portugal is around 760 euros ($833) per month, and any worker receiving less than $833 is entitled to get the wage revised. The government of Portugal aims to keep increasing the minimum wage until it reaches $987 by 2026. The estimated minimum hourly wage is $4.86 excluding bonuses and $5.67 including bonuses.
19. Lithuania
Minimum Hourly Wage: $5.63
Officially the Republic of Lithuania, the country’s minimum wage increased from 730 euros ($800) in 2022 to 840 euros ($921) in 2023, and it has a minimum hourly wage of $5.63 as of now. It is one of the countries with highest minimum wage in the world.
18. Poland
Minimum Hourly Wage: $5.66
The minimum monthly wage in Poland is nearly $867, whereas the minimum hourly wage is 22.8 PLN which amounts to nearly $5.66. The Polish government continues to put efforts to improve the lives of low-wage workers and has claimed to increase the minimum monthly wage to $894.4 from July 2023.
17. Japan
Minimum Hourly Wage: $6.87
As the fiscal year ended in March 2023, the country decided to increase its minimum wage by 3.3% by 31 yens ($0.22). The current minimum hourly wage in Japan stands at 961 yen, equivalent to $6.87 today.
16. United States
Minimum Hourly Wage: $7.25
The United States has had a minimum hourly wage of $7.25 since July 24, 2009, for workers covered by The Fair Labors Standard Act (FLSA), whereas tipped employees receive a minimum hourly wage of $2.13.
15. South Korea
Minimum Hourly Wage: $7.51
With an increase of about 5%, South Korea’s minimum hourly wage reached $7.51 in 2023. This minimum wage applies to all industries contributing to South Korea’s economy. However, the country expects only an increase of 2.5% in the hourly minimum wage for 2024 due to an economic downturn and an upsurge in the inflation rate.
On a side note, South Korea is one of the top countries with the most beautiful women in the world.
14. Slovenia
Minimum Hourly Wage: $7.58
With a population of about 2.1 Million, Slovenia is situated in Central Europe and is the richest Slavic country. The country’s minimum monthly salary increased by about 12% in Jan 2023, with the monthly minimum wage reaching nearly $1,320. Slovenia is also one of the countries with the best education.
13. Andorra
Minimum Hourly Wage: $8.13
Officially called the Principality of Andorra, Andorra is a small country between France and Spain in the eastern Pyrenees Mountains. The Andorran government introduced a 7% increase in the minimum wage in 2023 compared to 2022. A worker above 15 years has a minimum hourly wage of 7.42 euros, equating to $8.13.
12. Israel
Minimum Hourly Wage: $8.23
Officially known as the State of Israel, it is located in the Middle East with a GDP per capita of $54,659.8 as of 2022. In April 2023, the Israeli government approved an increase in the hourly minimum wage to nearly $8.2. It is one of the countries with highest minimum wage in the world.
11. Spain
Minimum Hourly Wage: $9.26
All the workers are subjected to the same minimum hourly wage irrespective of their age group and gender in Spain. There was an 8% increase in the minimum wage, i.e., Salario Mínimo Interprofessional (SMI), in January 2023. The minimum wage set for workers working on an hourly basis is $9.26, and for workers working on a monthly basis is estimated to be $1184.
10. Ireland
Minimum Hourly Wage: $12.38
With a GDP per capita of $104,038.9 as of 2022, Ireland has given promising contributions to high-tech and financial services. The average annual salary in Ireland is €44,202, which equates to nearly $48833, whereas the minimum wage for workers above 20 is nearly $12.4 per hour. It is one of the countries with the highest minimum wage in the world.
9. Canada
Minimum Hourly Wage: $12.57
In Canada, the provinces and territories can set their respective minimum wages. The province with the highest minimum wage in Canada is British Columbia, with an hourly wage of 12.65 USD. In contrast, the province with the lowest minimum wage in Canada is Saskatchewan, with an hourly wage of 9.81 USD. However, the federal hourly minimum wage in Canada amounts to $12.57.
8. France
Minimum Hourly Wage: $12.63
A 2.2% increase in the hourly minimum wage has been observed in France in May 2023. Currently, the minimum hourly wage stands at $12.63, amounting to a monthly salary of approximately $1,915.
7. Belgium
Minimum Hourly Wage: $13.10
Belgium has a minimum wage of 1,954.99 euros ($2,143) per month since December 2022. Since the average number of hours an employee works per week is 36-40; an employee earns nearly $13 if they work for 38 hours. Hourly minimum wages also vary and increase for construction and cleaning firms’ employees.
6. Germany
Minimum Hourly Wage: $13.15
Germany raised its national minimum wage from $10.76 per hour to $13.15 per hour in October 2022, amounting to nearly a salary of $2,280 for a full-time job for all workers above 18, making Germany the country with the highest minimum wage after Luxembourg in Europe. This 15% salary increase has also substantially impacted the lives of over 6 million Junior-level workers, with 4 of the 6 million workers being women.
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Disclosure: None. 20 Countries with the Highest Minimum Wage in the World is originally published on Insider Monkey.
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