5 Countries with the Lowest Minimum Wage in the World

In this article, we will look at 5 Countries with the lowest minimum wage in the world. If you want to read more about these countries and check out our detailed analysis of the global labour market, you can go directly to 20 Countries with the Lowest Minimum Wage in the World.

5. Pakistan

Minimum Hourly Wage: $0.30

Pakistan’s post-pandemic recovery came to a halt in the year 2023, and the economy has contracted after 2 consecutive years of growth. The real GDP also declined by 0.6%. Moreover, the devastating floods resulted in heavy damage to the agriculture sector. As more than 44% of the unskilled workers are associated with agriculture it has significantly impacted poverty rates. The average minimum hourly wage for Pakistan is PKR 84.71 or $0.30.

4. Uganda

Minimum Hourly Wage: $0.298

Uganda is expected to witness 6% growth each year in the medium term due to the ease in monetary policy and government policies. However, it faces challenges in sustaining its economic growth and curbing the growing poverty rates. The real GDP per capita only saw a 1.0% increase from the year 2011 to 2022. The minimum hourly wage for Uganda is UGX 1135.4, which is approximately $0.30. 

3. Angola

Minimum Hourly Wage: $0.25

Angola is a huge country characterized by a huge coastline. The economic growth of Angola is tied directly to the global oil demand, thus making the growth rates volatile. The country faces serious challenges, including poverty and inequality. Angola’s average minimum hourly wage is AOA 204.5 or $0.25.

2. Ethiopia

Minimum Hourly Wage: $0.23

Ethiopia is categorized as the 2nd most populous country in the African region and the fastest-growing economy in the region. Ethiopia has a gross national income of $1,020, thus making it one of the poorest countries in the world. It aims to get a lower-middle-income country by 2025. The average minimum hourly wage in Ethiopia is ETB 12.67, approximately $0.23 per hour.

1. Rwanda

Minimum Hourly Wage: $0.070

Rwanda has the lowest minimum hourly wage in our list of 20 countries with the lowest minimum wage in the world. It has an average minimum hourly wage of RWF 89.24, approximately $0.070 per hour. The country faces macroeconomic challenges, including increasing public debt and heavy reliance on public sector investments. Furthermore, the debt-to-GDP ratio reached 71% of the GDP in 2020 due to the increased borrowing following the pandemic.

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