In this article, we will be looking at the 25 countries with the lowest average salaries in the world. You can also check out the 15 Countries with the Highest Average Salaries in Asia.
According to the ILO’s World Employment and Social Outlook: Trends 2024 report, in 2023, the global unemployment rate improved slightly to 5.1% from 5.3% in 2022. However, projections for 2024 indicate an increase to 5.2% which will translate to an additional two million job seekers. This uptick is concerning given the recent improvements in employment rates post-pandemic. The disparity between high and low-income countries also remains stark, with unemployment rates in 2023 at 4.5% for high-income and 5.7% for low-income countries, alongside a much higher jobs gap rate of 20.5% in low-income countries compared to 8.2% in high-income ones.
Wages and inflation are both critical factors in the current economic scenario. Most G20 countries have seen a decline in disposable incomes due to inflation, which is likely to persist. This erosion of living standards has also been quite evident as extreme poverty (earning less than $2.15 per day) has increased by about 1 million workers in 2023, and moderate poverty (less than $3.65 per day) has risen by 8.4 million.
Given how income (including wages) is one of the most important factors for employee satisfaction and retention, businesses and governments must offer high enough salaries to sustain individuals financially. However, it is true that since the average income by country varies largely, it confirms the economic disparity between countries worldwide and thus, we must understand that we must not judge what is best for all countries by a single standard.
Nevertheless, Gallup’s State of the Global Workplace: 2023 Report revealed that disengaged employees cost the global economy $8.8 trillion which is equivalent to 9% of global GDP. In 2022, only 23% of employees were engaged at work. While employee engagement steadily rose over the past decade, the COVID-19 pandemic disrupted this trend.
Gallup’s analysis of over 112,000 business units also found that top-quartile teams in employee engagement achieve 10% higher customer loyalty, 23% higher profitability, and 18% higher sales productivity. Furthermore, engaged organizations experience significantly lower turnover rates. Despite the clear benefits, many organizations have yet to fully capitalize on engagement as a strategic asset.
As for countries with the highest average salaries, Germany is one of the top 10 countries with the highest salaries in the world with an average salary of $53,439.
Speaking of Germany, its economy has also recently observed a modest expansion in the first quarter of 2024 as the GDP grew by 0.2% quarter-on-quarter. The growth is primarily driven by a 1.2% rise in gross fixed capital formation, especially in construction investment. However, on a year-on-year basis, GDP remained stagnant at -0.2%.
Foreign trade has also boosted Germany’s economy, with exports increasing by 1.1% and imports by 0.6%, compared to declines of -0.9% and -1.6% respectively in the previous quarter. Inflation, measured at 2.2% in April 2024, is inching closer to the European Central Bank’s 2% target. Despite this positive trend in inflation, consumer spending has not significantly recovered, with both private and government consumption falling by 0.4%.
It is also interesting to note that the United Arab Emirates is often considered one of the countries with high salaries and low cost of living. The UAE offers high, tax-free salaries, especially in the oil and gas, finance, and aviation sectors. While the cost of living in cities like Dubai and Abu Dhabi can be high, the tax-free income helps balance this out. To read more about countries with the best salaries in the world, see 20 Countries With the Highest Starting Salaries for Graduates.
On a side note, the United States is known to have the second-highest average salary in the world per month ($4,954) after Switzerland. To read more about the salaries paid in the US, see Average Salary in Each State in US.
Despite the golden picture of a high-salary country, the US is plagued with a serious gender pay gap despite efforts to address it as women earn 16% less than men on average. This translates to women earning just 84 cents for every dollar a man makes. The situation is even direr for women of color, with Latinas making only 55% and Black women making 64% of what non-Hispanic white men earn. Native American women also face a major gap as well, being paid only 59 cents for every dollar paid to white, non-Hispanic men. Over a 40-year career, a 20-year-old woman starting full-time work could lose as much as $407,760 compared to her male counterpart.
There are two types of gender pay gaps: the controlled and uncontrolled gap. The controlled gap, which factors in variables like job title, experience, and education, currently stands at 99 cents for every dollar men earn. However, the uncontrolled gap remains at 84 cents which also confirms the systemic disparities beyond individual qualifications. Despite efforts, progress in closing the gap in the US has been slow, with the pay disparity narrowing by only half a cent annually since 1963.
Also, see the 15 Countries with the Highest Average Salaries in Europe and 25 Countries with the Highest Average Salaries in the World.
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Our Methodology
To identify the countries with the lowest average salaries in the world, we identified 35 countries with the lowest Gross National Income (GNI) per Capita in the world. We relied on data for GNI per capita from the World Bank for the year 2022. Of the 35 countries, 25 with the lowest annual average salaries were selected and are now listed below in descending order.
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25. Lesotho
Average Salary: $2400
Lesotho is one of the most income-unequal countries in the world, with a Gini index of 49.5 as of 2019, primarily due to a public-private wage gap and urban-rural disparity. Moreover, with a GNI per capita of $1230, it is one of the countries with the lowest average income.
24. Tanzania
Average Salary: $2302
Salaries in Tanzania have historically been low, but there’s been a shift recently. In response to protests about the high cost of living, President Samia Suluhu Hassan approved a salary increase. The minimum wage saw a boost of 23.3% which is the first government worker salary hike since 2016.
23. Ethiopia
Average Salary: $1867
Ethiopia ranks #23rd in our list of countries with the lowest average salaries in the world. The country’s informal economy is estimated at 33.7%, equivalent to approximately $162 billion at GDP PPP levels.
22. Liberia
Average Salary: $1860
Liberia’s economy remains largely underdeveloped, with a gross domestic product (GDP) of only $3.222 billion as of 2019. This can be largely attributed to the devastating impacts of the First (1989–1996) and Second Liberian Civil War (1999–2003). Consequently, Liberia is one of the world’s poorest and least developed countries, according to the United Nations.
21. Tajikistan
Average Salary: $1740
With average salaries barely exceeding $150 per month in Tajikistan, many professionals including skilled teachers, are forced to migrate in search of better opportunities. The shortage of teachers is further worsened by insufficient incentives which also affects education quality nationwide.
20. Pakistan
Average Salary: $1727
According to the National Transfer Accounts (NTA), workers in Pakistan observe lower productivity and incomes compared to global standards. The economy heavily relies on unpaid labor, predominantly by women. Moreover, across provinces, self-employment often begins late, with Balochistan starting at age 50. Punjab and Sindh have the highest average salaries of Rs60,000 monthly ($216), while Balochistan lags at nearly Rs30,000 ($108).
19. Yemen
Average Salary: $1589
Yemen, situated in the Middle East and North Africa (MENA) region, has historically struggled with poverty and now confronts one of the most severe humanitarian crises globally. Since 2014, ongoing conflict has exacted a heavy toll on both the economy and society. Over the period of 2015 to 2022, the country witnessed a drastic 52% decline in real GDP per capita, resulting in approximately 21.6 million individuals requiring urgent humanitarian aid.
18. Gambia
Average Salary: $1500
Prior to 2020, poverty in Gambia witnessed a gradual decline as 48.6% of Gambians lived below the poverty line in 2015 which reduced to 45.8% by 2019. However, the COVID-19 pandemic reversed this progress as poverty increased by 4.8 percentage points in 2020 and eventually, affected more than half of the population.
17. Mozambique
Average Salary: $1480
Owing to the low salaries in Mozambique, there have been prolonged strikes by health workers, including doctors who now demand better pay and essential supplies. This also explains why patients are facing restricted access to healthcare which has been leading to fatalities. Mozambique ranks #17 in our list of countries with the lowest average salaries in the world.
16. Malawi
Average Salary: $1140
As evident in its low average annual salary of $1140, Malawi struggles with serious poverty and thus, ranks as one of the poorest countries in the world where over half of its populace lives in poverty, and one-fifth observes extreme deprivation. Necessities like education, healthcare, clean water, and sanitation remain elusive for many.
15. Guinea
Average Salary: $1130
Despite its rich natural resources such as bauxite, iron ore, gold, and diamond reserves, the country’s economy remains underdeveloped due to insufficient infrastructure and rampant corruption, which hinder large-scale investments. The agriculture sector, employing a major portion of the population, relies heavily on subsistence farming and faces inefficiencies and productivity challenges.
14. Guinea-Bissau
Average Salary: $900
Recently, Guinea-Bissau’s government has decided to suspend teachers’ salaries to combat fraudulent claims on the payroll and reduce the burden of ghost civil servants. With a dependence on external aid for education sector salaries, the decision targets around 8,000 teachers earning an average of 50,000 CFA francs ($86) per month.
13. Burkina Faso
Average Salary: $876
With an average salary of $876, Burkina Faso ranks 13th in our list of countries with low salaries in the world. As of 2022, the Gross National Income per Capita of Burkina Faso is $850.
12. Mali
Average Salary: $852
Wages in Mali remain low as it is one of the world’s poorest countries. Historically reliant on foreign aid, Mali’s economy has struggled to achieve sustainable growth. With an average salary of $852, Mali is one of the countries with the lowest salaries.
11. Democratic Republic of the Congo
Average Salary: $780
In the Democratic Republic of the Congo, real wages and salaries have experienced a steady annual increase that reached 20.61% in 2022. However, despite this growth, the absolute figures remain relatively low with an average salary of $780 per year.
10. Sudan
Average Salary: $725
Rampant inflation and a devalued currency have led to increasing prices for essentials, while unemployment rates hover around 50%. The looting of businesses and markets further compounds the crisis and has also limited access to goods and services.
Sudan is also one of the fastest-declining economies in the world in 2024.
9. Afghanistan
Average Salary: $720
With an average salary of $720, Afghanistan ranks 9th in our list of countries with the lowest average salaries. As of 2022, the Gross National Income per Capita of Afghanistan is $720.
8. Central African Republic
Average Salary: $718
Apart from the low salaries and GNI per capita, the economic challenges of the Central African Republic (CAR) are multifaceted. In 2022, the economy stagnated due to floods and fuel shortages, with real GDP growth settling at 0%.
7. Eritrea
Average Salary: $570
Low salaries persist as a pressing issue in Eritrea. For instance, an accountant earns around 4,670 ERN, roughly equivalent to $311.33, while a financial analyst garners 8,680 ERN, approximately $578.66. Even managerial positions like office managers and business analysts offer low salaries of 5,750 ERN ($383.33) and 8,520 ERN ($568) respectively.
6. South Sudan
Average Salary: $540
It is interesting to note that in South Sudan, public officials have recently seen their salaries increase by up to 400%. However, when compared against market prices, the impact is understood better. For instance, in 2017, a small water bottle cost 50 South Sudanese pounds (SSP), but by 2023, it had reached 100 SSP.
5. Syria
Average Salary: $528
The Syrian president has recently approved a 50% salary hike for civil servants, soldiers, and pensioners. Nevertheless, over 500,000 lives lost and millions displaced since 2011 have ravaged Syria’s economy, with more than 90% facing poverty.
4. Niger
Average Salary: $533
In Niger, extreme poverty continues to be a serious challenge even in 2024. According to the World Bank, humanitarian needs in the country have also increased, with 4.3 million people requiring assistance in 2023 compared to 3.7 million in 2022. Additionally, the country hosts close to 690,000 refugees, asylum-seekers, and internally displaced persons.
3. Madagascar
Average Salary: $504
Madagascar has an estimated 80.7% of its 30.3 million population living below the poverty line and has pushed it to survive on just $2.15 per person per day as of 2023. Despite a modest economic growth of 3.8% driven by tourism and domestic expenditure, persistent challenges like limited job creation continue to plague the country.
2. Somalia
Average Salary: $457
Somalia, a country in Sub-Saharan Africa, is fighting critical poverty challenges as 69% of its population lives below the international poverty line of $1.90. Terrorism exacerbates this situation, as fragile governments struggle to provide basic services which allows terrorist groups like Al-Shabaab to gain influence.
1. Burundi
Average Salary: $415
With an average salary of $415 per year, Burundi is the country with the lowest average salary in the world in 2024. Moreover, in 2023, Burundi fought with profound poverty as over 70% of its population struggled to meet basic needs. The situation was particularly dire for children, as around 56% of those under 5 suffered from stunting due to malnutrition. Recurring climate-related disasters also worsened the plight which led to internal displacements and damage to the livelihoods of rural communities that were heavily reliant on subsistence farming. Burundi also hosted 85,000 food-insecure refugees and asylum seekers which also added to the strain on already limited resources.
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