In this article, we will look at the 25 countries with the highest average salaries in the world. We have also discussed the global unemployment rates. If you want to skip our detailed analysis, head straight to the 10 Countries with the Highest Average Salaries in the World.
The International Labour Organization (ILO) has reported that global unemployment rates are anticipated to rise in 2024, despite a slight improvement in the previous year. The 2023 unemployment rate saw a modest decrease to 5.1 percent from 5.3 percent in 2022. However, the outlook for 2024 suggests an additional two million job seekers, pushing the global unemployment rate to 5.2 percent. This rise is concerning, particularly amid growing social inequalities and stagnant productivity.
Notably, there are significant variations between higher and lower income countries. In 2023, the jobs gap rate in high-income nations was 8.2 percent, contrasting with 20.5 percent in low-income countries. Similarly, while the unemployment rate in high-income countries remained at 4.5 percent, it was 5.7 percent in low-income nations. These disparities underscore the challenges faced by different economic strata in accessing decent work opportunities.
Moreover, despite some improvements since 2020, working poverty persists, with both extreme and moderate poverty levels increasing in 2023. Income inequality has widened, which could impede economic recovery efforts. The report highlights the urgency of addressing structural imbalances in the labour market to ensure sustained recovery and promote social justice, emphasizing the need for swift and effective action to mitigate these challenges.
In the World Economic Outlook Update for January 2024, global growth is forecasted to remain stable at 3.1 percent throughout the year, with a slight uptick to 3.2 percent expected in 2025. The report attributes this steady growth to efforts by central banks to combat inflation through heightened interest rates and the scaling back of fiscal support, particularly in the face of mounting debt burdens. Notably, inflationary pressures are easing more rapidly than anticipated across most regions, driven by the resolution of supply-chain disruptions and the implementation of tighter monetary policies.
Projections suggest a decline in global headline inflation to 5.8 percent for 2024, followed by a further decrease to 4.4 percent in 2025. However, it is noted that the forecast for 2025 has been revised downwards, indicating a more optimistic outlook for inflationary trends in the near future. Despite these positive developments, challenges persist, particularly regarding the impact of restrictive monetary policies and reduced government spending on overall economic activity.
Before getting into our list of countries with the highest average salaries in the world in 2024, let’s look at some companies that have recently increased salaries for their employees.
Walmart Inc (NYSE:WMT) has recently revealed salary increases for its managers. Effective from February 1st, the base pay for Walmart Inc (NYSE:WMT) store managers has increased from $117,000 to $128,000 annually. Additionally, depending on the profitability of the store, annual bonuses could skyrocket to up to 200% of a store manager’s salary.
Moreover, Walmart Inc (NYSE:WMT) is not just focusing on managerial roles but is also investing in its hourly workers. The hourly wage is set to increase to over $18, demonstrating the Walmart Inc (NYSE:WMT)’s dedication to supporting its employees at all levels. These wage increases, coupled with other recent initiatives like sensory-friendly store hours and expansion of drone delivery services, showcase Walmart Inc (NYSE:WMT)’s multifaceted approach to enhancing both the employee and customer experience.
On the other hand, Tesla Inc (NASDAQ:TSLA) announced major pay increases for its factory workers effective January 8, with hourly wages ranging from $22 to $39, according to leaked internal documents. The company has structured its pay tiers based on three regions, reflecting varying costs of living. Workers in California, including those in Fremont and Palo Alto, receive the highest pay, while those in Austin, Texas, and Sparks, Nevada, receive the lowest. Tesla Inc (NASDAQ:TSLA)’s pay structure also includes performance-based incentives, with employees eligible for bonuses every six months, determined by individual and company performance. Additionally, workers can move between pay levels every six months based on performance evaluations. It is worth highlighting that the US is one of the top 10 countries with the highest average salaries in the world.
Compared to the average auto worker’s hourly wage of $28, Tesla Inc (NASDAQ:TSLA)’s pay rates represent a competitive offer. However, the company is not alone in increasing wages; other automakers like Toyota and Hyundai have also boosted pay at their US factories, influenced in part by the United Auto Workers’ contract negotiations. Despite these improvements, Tesla Inc (NASDAQ:TSLA) faces ongoing unionization efforts, with employees at its Fremont Factory reportedly forming a UAW organizing committee.
Copyright: sifotography / 123RF Stock Photo
Methodology
To list the countries with the highest average salaries in the world, we relied on our database of the highest average salary countries for different professions ranging from engineers to doctors to caregivers to bankers and even designers. We averaged the salaries of these professions for each country and have now been listed below. The list is presented in ascending order.
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25. Israel
Average Salary: $42,300
The country has a strong, innovative economy driven by technology, particularly in sectors like cybersecurity, biotechnology, and software development. Additionally, Israel places a high emphasis on education, producing a skilled workforce capable of contributing to these industries. Both of these factors explain the high salaries in the country.
24. Italy
Average Salary: $43,920
Italy is one of the countries with the highest monthly average salaries in the world. Apart from paying high salaries, Italian work culture highly prioritizes achieving a healthy work-life balance, often seen through the acceptance of extended vacations and the allowance for personal time off.
23. United Kingdom
Average Salary: $44,323
The UK’s job market offers a spectrum of earning potentials. Median full-time weekly pay in April 2023 was £682, a 5.8% rise from the previous year, while part-time workers earned £241 weekly, up by 5.5%. High-paying roles are often in managerial and professional sectors, particularly in IT, communications, finance, and insurance. The median gross annual earnings for full-time employees hit £34,963 in April 2023, marking a 5.8% increase from 2022. Despite wage inflation at 5.6%, outpacing the 3.4% inflation rate, disparities persist with men more likely to earn higher wages than women.
22. Japan
Average Salary: $45,000
Japan’s largest companies have agreed to a substantial 5.28% wage increase for 2024 which is the highest hike in 33 years, as reported by the country’s main union. This decision speaks volumes about an impending shift in the Bank of Japan’s long-standing stimulus efforts.
21. Belgium
Average Salary: $45,348
In 2024, Belgian employers are planning a 4.9% increase in salary budgets, aiming to address high inflation and labor market challenges. This increase, while lower than the 11.3% seen in 2023, reflects efforts to remain competitive. Factors driving this include inflationary pressure (71%) and the need to respond to a tighter labor market (49%).
20. Netherlands
Average Salary: $45,870
ADP’s research forecasts increased take-home salaries in the Netherlands for 2024, primarily due to enhanced tax credits. Individuals earning a gross monthly salary of 3,400 euros ($3795) could see approximately 80 euros ($86.74) more in their bank accounts monthly, attributed to elevated income-related tax reductions. Notably, those on minimum wage with full-time positions may experience the most significant boost, potentially up to 267 euros ($290) extra monthly.
19. Sweden
Average Salary: $46,020
The Swedish authorities have raised the minimum monthly salary requirement for work permits to SEK 27,360 ($2590) without provisional regulations. This increase is based on the current year’s median wage, aims to impact 10-20% of work permit applicants, particularly in service, health care, sales, and forestry sectors.
18. Austria
Average Salary: $46,379
According to Statistics Austria, the gross monthly salary for Master’s graduates in full-time positions has risen from €3,100 ($3360) to €3,300 ($3577) between the academic years of 2008/09 and 2020/21. Conversely, Bachelor’s degree holders have also experienced an increase in earnings, with the median income climbing from €2,653 ($2878) to €2,986 ($3236) per month over the same period.
17. Hong Kong
Average Salary: $46,951
In Hong Kong, 78% of employees anticipate a salary increase in 2024, with 35% hoping for a 3-5% raise. Additionally, 43% expect higher bonuses this year, compared to 41% in 2023. Despite only 68% receiving raises in 2023, mostly between 3-5%, optimism prevails.
16. New Zealand
Average Salary: $47,703
According to the Trade Me jobs report, the national average salary increased by 8% from the previous year. Notably, 15 industries hit record average salaries, with regions like Wellington, Southland, and Otago witnessing between 9 to 10% increases. The healthcare sector experienced the most substantial annual wage growth at 10 percent, reaching $70,649, while trades and services, manufacturing and operations, education, and hospitality and tourism all saw major upticks ranging from 8 to 9%.
15. Canada
Average Salary: $48,607
Temporary immigration pathways have exerted downward pressure on wage growth in Canada, particularly in low-pay sectors such as accommodation and agriculture. Statistics Canada reports that the majority of temporary foreign workers are employed in these industries, which are characterized by lower wages compared to other sectors. With over one million unfilled jobs in May 2022, which decreased to 637,365 by November 2023, the influx of temporary workers has filled vacancies but likely impacted the wages of established Canadians.
14. Ireland
Average Salary: $48,887
Ireland’s emphasis on education produces a highly skilled workforce, attracting global talent. Government policies supporting competitive wages and a high standard of living also contribute.
13. Finland
Average Salary: $49,613
In Helsinki, over 4,500 workers are to benefit from raises, with specific groups receiving varying amounts. For instance, early childhood education professionals, including teachers and sociologists, will see a monthly increase of 164 euros ($177), while youth counsellors will receive 75 euros ($81) more per month. Additionally, workers in the social, health, and rescue sectors, along with speech therapists, are set to receive boosts ranging from 200 to 300 euros ($218 to $325) per month.
Finland is also considered to be one of the countries with high salaries and lower cost of living.
12. Qatar
Average Salary: $50,868
The country has a strong economy fueled by its vast oil and natural gas reserves, which provide a steady stream of revenue. Qatar’s government actively invests in infrastructure and diversification projects, creating job opportunities across various sectors. Additionally, stringent labor laws ensure protection for both Qatari citizens and expatriate workers, contributing to a harmonious labor market.
11. Monaco
Average Salary: $51,000
Salaries in Monaco are high primarily due to its status as a tax haven and its affluent economy driven by the finance and tourism sectors. The principality imposes no income tax on residents, attracting a wealthy population and businesses.
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Disclosure: None. 25 Countries with the Highest Average Salaries in the World is originally published on Insider Monkey.