The minimum wage of a country is an indication of how well that country respects labor rights of its citizens, and in this article, Insider Monkey provides you with a list of 11 countries with the highest minimum wage in the world in 2017.
Minimum wage is the lowest possible rate employers can pay employees. The legal provisions concerning minimum wage exist in most of the countries nowadays. The first laws with regards to minimum wage were implemented in the 1980s, in Australia and New Zealand. Minimum wage is a subject of an ongoing debate. There are different opinions as to the positive and negative aspects of the minimum wage. The Balance has recently published an article which provides an overview of the arguments used for and against the minimum wage.
The proponents of the idea that minimum wage should be raised a point to the fact that it would lead to an improvement in the standard of living of poverty-stricken workers. Furthermore, they assert that the additional income workers are given would be spent by consumers, creating the ripple effect in the economy of a country. The proponents of minimum wage also assert that a raise in minimum wage would reduce government expenses for social programs, and income disparity in terms of gender and race. The opponents of the minimum wage, on the other hand, claim that an increase in minimum wage may result in higher unemployment rates, especially among inexperienced workers. Moreover, a raise in minimum wage would create an incentive for companies to invest in technology and machinery rather than human resources. The opponents of the idea also suggest that an increase in minimum wage would ultimately lead to an increase in prices, so as to counterweight labor costs. One of the assertions is also that it would lead to a higher school drop-out rate.
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Being familiar with the struggles of the poor layers of society, it should be clear what part of the argument I stand on. Not only does a raise in minimum wage help poverty-stricken populations cope easier with the daily struggles inherent to capitalism, but it also enhances the rights they are entitled to being a part of the work force. Last time we talked about minimum wage we provided a list of 10 jobs that pay more than minimum wage for teenagers, this time however, we focus on countries with the highest minimum wage in 2017. Interestingly, these countries are also among top 25 richest, healthiest and most advanced countries in the world. Talk about utopia!
Australia had the highest minimum wage in the world in 2016, giving a generous $17.70 per hour to workers. Statistics show that African countries have very low minimum wages year after year. In 2015, Sierra Leone had the lowest minimum wage in the world, where workers were given only 0.03 USD per hour. The data on the minimum wages in the USA in 2017 show that D.C. has the highest minimum wage in the USA, 12.50 USD per hour. It is followed by Washington and Massachusetts, 11 USD per hour. Puerto Rico has the lowest minimum wage in the USA, 6.55 USD per hour, which is lower than the minimum wage established by the US law.
When it comes to Europe, not all of the countries have legal provisions on minimum wage. Since there is no law pertaining to minimum wage, sometimes this means that it is not possible to gather the statistical data for these countries and do a comparative analysis. For example, there are no data for minimum wage per hour in Norway, as rates are agreed upon through collective bargaining for different sectors. As indicated by Eurostat, this is also the case in Austria, Denmark, Finland, Iceland, Italy, Sweden and Switzerland. In Cyprus, the government sets minimum wages for specific occupations.
According to the Eurostat’s data from July 2017, we already mentioned, Luxembourg is the country with the highest minimum wage in Europe, with 1999 Euros per month. Bulgaria is one of the EU countries with lowest minimum wage, with less than 250 Euros per month. Romania, Latvia, Lithuania, Hungary, Czech Republic, Slovakia, Croatia, Estonia, and Poland are other EU countries with rather low minimum wages. Poland appears to do best among the worst. Minimum wage in Poland is fixed at 473 Euros per month.
When drafting the list of countries with the highest minimum wage in the world in 2017, I used the data provided by OECD and Eurostat. I also referred to the data provided by the official institutions of the countries which are on the list. Among other things, this data included the information on the legislations concerning minimum wages and annual changes in minimum wages.
Without further delay, here is the list of the 11 countries with the highest minimum wage in the world in 2017.
11. USA
The minimum wage in the USA is regulated through the Fair Labor Standards Act. As of 24th of July, 2009, the minimum wage workers are entitled to 7.25 USD, indicating an increase in minimum wage which was 6.84 USD in 2008. Some states are more generous toward their labor force and have higher minimum wages. California, for example, pays 10.50 USD per hour.
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10. United Kingdom
The United Kingdom has just recently introduced the legislation concerning minimum wage. The UK belongs to a group of European countries which have a minimum wage higher than 1000 Euros per month. The current minimum wage for persons above 25 is 7.50 GBP or 9.97 USD. This amounts to a monthly salary of 1397 Euros. This indicates a decrease in minimum wage which was 1512 Euros in January, 2016. I wonder if Brexit has something to do with this.
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9. Germany
Since the beginning of this year, the minimum wage to which workers in Germany, the next one in our list of countries with the highest minimum wage in the world in 2017, are entitled is 8.84 Euros or 10.44 USD per hour. This suggests an increase in minimum wage, which was 8.50 Euros per hour in April, 2015. Since the decision on the raise of the minimum wage was adopted only in the beginning of this year, it does not immediately apply to sectors which are covered by binding collective agreements. Some workers are yet to experience the benefits arranged by the German government.
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8. Ireland
According to the regulations in Ireland, the wage you receive is the matter of an agreement between you and your employer; however there is a minimum wage established under the National Minimum Wage Act that should be respected and that workers can call upon in case they feel someone’s intent on exploiting them. The minimum wage in Ireland is 9.25 Euros per hour or 10.92 USD. For persons under the age of 18, there are minimum sub-rates.
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7. Canada
It is estimated that by the end of 2017, the minimum wage in Canada that ranks 7th in our list of countries with the highest minimum wage in the world in 2017, will be 11.43 USD per hour. If compared to the minimum wage in 2010, it indicates an increase of the astonishing 23 %. The federal legislation of Canada gives the authority to its provinces and territories to draft and implement laws with regards to labour matters which also implies minimum wage. Nanavut and Yukon have the highest minimum wage, 13.0 USD per hour, while Newfoundland & Labrador has the lowest minimum wage, 10.50 USD.
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6. The Netherlands
(Government of the Netherlands)
Since January, 2017 the Netherlands has a minimum wage of 1551 Euros per month. Taking into account that the working week in the Netherlands is 40 hours, the estimated hourly rate is 9.69 Euros or 11.44 USD. Comparing the current rate to that of previous years, slow but steady increase is noticeable. This places the Netherlands on 6th spot of our list of 11 countries with the highest minimum wage in the world in 2017.
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5. Belgium
(Federal Public Service Employment, Labour and Social Dialogue)
The minimum wage in Belgium is 1562 Euros per month, which is higher than the minimum wage in previous years. This indicates an hourly rate of 9.76 Euros or 11.52 USD. As Eurofound suggests, in June, 2016 the national minimum wage grew, by 2 %, for the first time since December, 2012, which shows a modest growth in minimum wage. This ranks Belgium 8th on our list of the countries with the highest minimum wage.
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4. France
France and Belgium do not only have common language, but also the same minimum wage. The minimum wage in France, that ranks 4rd in our list of countries with the highest minimum wage in the world in 2017, is 9.76 Euros per hour or 11.52 USD. The minimum gross wage is 9.61 Euros, which amounts to 1,457.52 per month. However, unlike in Belgium, working week in France has 35 hours. You are more than welcome to add extra hours to your shift.
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3. Luxembourg
Who would have thought that this small European country we rarely hear of, rocks when it comes to minimum wage? Luxembourg has the highest minimum wage in Europe, 1998 Euros per month, which suggests an hourly rate of 12.4 Euros or 14.70 USD. In July, 2016 the minimum wage was 1.922 Euros so we are witnessing an increase. Let’s hope Luxembourg continues to side with workers on this one.
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2. New Zealand
As of 1st of April, 2017 the minimum wage for adults in New Zealand, the number two in our list of countries with the highest minimum wage in the world in 2017, is 15.75 USD per hour. The minimum wage is different for adults and those who are starting-out. Novices in New Zealand’s labour force are entitled to 12.60 USD per hour. The numbers indicate a rise in minimum wage which was 14.25 USD per hour for adults and 11.40 USD for beginners, in April, 2014.
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1. Australia
The minimum wage in Australia is regulated through the Fair Work Act. As of July, 2017, the minimum wage in Australia is 18.29 USD, after an increase of 3.3 %. This suggests that Australia is a country with the highest minimum wage in 2017. Australia carries the title of the country with the highest minimum wage in the world for some years now. It should not be surprising that countries which first created legal provisions on minimum wage are at the top of our list. It suggests that the priorities for the governments of Australia and New Zealand have stayed the same.
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This was Insider Monkey’s list of 11 countries with the highest minimum wage in the world in 2017.
