Top 10 Countries with Highest and Lowest Minimum Wage in the World
Whether you’re working within your country or planning to migrate abroad for job and stay, it’s important to know the minimum wage rate. That’s because it’s illegal for an employer to pay below the minimum wage.
And laws do not permit workers to accept pay below the minimum wage since it can lead to a lot of economic and social problems, among others. Just in case you’re unaware, a worker has to report to concerned authorities. If not, you’re also guilty of violating labor and other laws.
There’re several factors that decide the minimum wage in a country. Therefore, let’s start by understanding the definition of the term minimum wage.
Understanding Minimum Wage
The International Labour Organisation (ILO), an organisation of the United Nations, defines minimum wage. This definition is binding on all member and signatory states of ILO.
The ILO definition clearly says: “Minimum wages have been defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.”
Over 90 countries accept and implement this minimum wage definition of ILO. Some countries pay excellent, high minimum wage and hence, don’t implement the ILO definition. Others are economically fragile, poorest countries that have very few industries and job opportunities and hence, cannot implement a minimum wage standard of ILO.
Variations in Minimum Wage
The ILO standard of minimum wage also has variations. These can be decided by individual countries. Broadly speaking, minimum wages are also decided on basis of job risks and hazards, perks and other benefits and workhours per week.
It also takes into account relocation, climatic conditions, cost of living, job security, medical benefits and other parameters.
Usually, most employers will pay at least the minimum wage or slightly more. The most important point to remember is that employers cannot pay lower than the minimum wage, unless there’re wage deductions for reasons allowed under law.
Countries with Highest Minimum Wage
Given the above facts, let’s look at the countries with the highest minimum wage in the world. However, it’s worth remembering that lots of factors go into calculation of the minimum wage such as cost of living. Hence, if you’re signing-up for a minimum wage job, consider your lifestyle before accepting it.
The following figures for minimum wages are taken from Organization of Economic Cooperation & Development (OECD), ILO and other sources.
Note: The original figures referenced in this article were based on 2018 data. For updated figures, refer to latest OECD and ILO publications for 2024-2025.
1. Australia
At US$12.10 per hour, OECD ranks Australia as the country with highest minimum wage for workers. The $12.10 indicates the actual take-home amount and not gross income before taxation. All employers in Australia have to pay this minimum wage under law or face legal action.
2. Luxembourg
Offshore banking haven and a major financial center of the world, Luxembourg ranks second on the list of countries that pay the highest minimum wage. A worker in Luxembourg can expect at least $11.80 per hour.
3. France
Despite slower GDP and economic growth due to problems facing the European Union, the minimum wage in France stands at $11.50 per hour. This should not come as surprise since cost of living in France, especially urban centers, is exceptionally high.
4. Germany
Although the economic powerhouse of European Union, the minimum wage in Germany stands at $10.90 per hour. This does not mean Germans are stingy paymasters. This minimum wage is adequate for any worker in Germany to lead a decent life because the state provides a lot of benefits free for its citizens.
5. Belgium
Belgium ranks at No.5 with a minimum wage of $10.40 per hour. This is a very reasonable sum considering that cost of living in Belgium is relatively lower than several other European Union member states.
6. The Netherlands
Also with $10.40 per hour, Netherlands comes at No.6. Though Belgium and the Netherlands have equal minimum wage, there’s a slight difference in their rankings due to cost of living.
7. New Zealand
New Zealand sets a minimum wage of $10.10 per hour. Taxation levels and cost of living in New Zealand are relatively lower than in most European states.
8. United Kingdom
Converted to US Dollars, a worker in UK can expect $9.60 as the minimum wage per hour. This rate is stable despite Brexit and reflects UK's strong economy.
9. Ireland
Ireland’s minimum wage is also $9.60 per hour, similar to UK. This figure is expected to rise as the Irish economy continues to grow steadily in 2025.
10. Canada
Canada has a minimum wage of $9.50 per hour. The country is witnessing steady growth, and with a large influx of migrants and their investments, Canada is becoming an economic powerhouse in North America.
Other High Minimum Wage Countries
USA, Norway, Denmark, Sweden, Finland, Iceland, Austria, and Switzerland also offer high wages. However, some of these countries do not follow a uniform minimum wage law compliant with ILO/OECD, so they are not included in global ranking charts.
Poorest Payers of Minimum Wage
As we can see, the top 10 countries with highest minimum wage are mostly developed or emerging economies. On the other hand, several nations still have extremely low minimum wage despite having legal structures.
1. Venezuela
Venezuela has the lowest minimum wage in the world at $43.62 per year due to hyperinflation and political turmoil.
2. Georgia
The country has made strong economic gains in recent years, but minimum wage remains at just $120 per year.
3. Cuba
Cuba's minimum wage is $147 per month, held back by decades of isolation and a sluggish economy.
4. Kyrgyzstan
Minimum wage in Kyrgyzstan is around $199 per year, reflecting low industrial development.
5. Tanzania
Tanzania’s economy depends mainly on tourism and agriculture. It has a very low wage base.
6. Bangladesh
Despite being a global garments exporter, Bangladesh still has a minimum wage of around $224 per year.
7. Malawi
Minimum wage in Malawi stands at $294 annually. While the cost of living is low, the earnings remain modest.
8. DR Congo
The minimum wage is $298 per year, limited by poor infrastructure and ongoing health crises.
9. The Gambia
Minimum wage in The Gambia is $317 per year. With most of the population in agriculture, income levels are very basic.
10. Liberia
Minimum wage in Liberia stands at $332 per year. Political instability and limited industrial output have held back economic growth.
In Conclusion
Minimum wage laws vary greatly by country and depend on multiple factors including cost of living, taxation, and labor regulations. In some countries, minimum wages are only nominal and enforcement remains weak. If you are planning to work or relocate, consider not just the minimum wage but also the full picture—including lifestyle, job stability, and benefits.
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