Minimum wage by country in 2024: the complete guide for global employers

Hiring employees abroad comes with numerous challenges, one of them being compliance with local compensation laws. Compensation laws govern how, when, and how much employers have to pay their employees. This includes minimum wage rates.

Minimum wage rates differ from one country to the next, making it hard for international employers to remain compliant across all geographies. What are the current minimum wages around the world? Which country has the highest minimum wage in the world and which one has the lowest minimum pay requirements?

Here is an overview of minimum wages by country in 2024.

Before we get right into comparing minimum wages by country, let’s first shed some light on which bodies, institutions, and organizations are responsible for setting minimum wages around the world. This actually differs from one country to the next.

Some countries have introduced a national minimum wage that is the same for employees across the country. In other countries, it’s up to the regions, provinces, or even municipalities to set minimum wages for workers. Last but not least, there are also countries where minimum compensation standards are set for each industry individually by collective bargaining agreements.

Minimum wages can thus be set by a number of different actors, including federal and regional governments, special governmental boards (often known as minimum wage boards) or institutions whose prime function is to control national wage levels, or the labor unions charged with drafting the respective CBA.

Minimum wages are not always set by the central government. In many cases, they are set by individual regions or industry sectors. Therefore, there are only a handful of countries that don’t have at least some form of minimum wage law.

The most cited (developed) countries that haven’t defined a national minimum wage are Denmark, Sweden, Norway, Finland and Iceland. Switzerland doesn’t have a statutory minimum wage either. Instead, minimum wages are set by each canton individually. Other countries without statutory minimum wage include Singapore, Italy, and Austria.

While none of the countries listed above have a national minimum wage, they have other mechanisms in place that determine minimum wages, notably collective bargaining agreements and regulations with regard to specific job categories.

Comparing minimum wages by country can be difficult. First, minimum wages are typically stated in local currency. Second, while some countries define a monthly minimum wage, others define minimum wages per hour. Third, in countries like the United Kingdom, Ireland or the Netherlands, minimum wage rates depend on the employee’s age.

So, with these factors in mind, which country has the highest minimum wage in the world? The country that currently has the highest minimum wage in the world is Luxembourg. For skilled workers aged 18 and above, employers have to pay an hourly minimum wage of EUR 17.83. The monthly minimum wage meanwhile stands at EUR 3,085.11 (EUR 2,570.93 for unskilled workers over 18).

Here is a list of the highest minimum wages around the world:

• Australia: The current hourly minimum wage in Australia is AUD 23.23. The weekly minimum wage rate stands at AUD 882.80.

• Germany: In January 2024, the national minimum wage in Germany rose to EUR 12.41 per hour. A further increase to EUR 12.82 is planned for June 2025.

• Ireland: Employees in Ireland are entitled to a minimum hourly pay rate of EUR 12.70 (valid for workers aged 20 and older).

• France: The current minimum wage in France is EUR 1,766.92 per month, which equals an hourly minimum pay of EUR 11.65.

• Netherlands: The statutory minimum wage in the Netherlands is currently set at EUR 13.21 per hour for employees aged 21 and up. It is revised every six months.

• New Zealand: New Zealand’s minimum wage currently stands at NZD 22.70. The next revision of the national minimum wage is planned for March 31, 2024.

• Switzerland: Although there is no national minimum wage in Switzerland, four cantons have set their own minimum pay rates. The highest minimum wage must be paid in the canton of Geneva with CHF 24.32.

There is no definite answer to the question of where in the world businesses can find the lowest minimum wage by country. However, there is no doubt that Asia and Africa are the two world regions where minimum wage levels are the lowest. Here is a list of countries with the lowest minimum wages around the world:

• Afghanistan: The current national minimum wage for employees in the private sector stands at AFN 5,500 (roughly EUR 71.99) per month.

• Bangladesh: The general minimum wage in Bangladesh is set at BDT 1,500 (roughly EUR 12.52) per month, but different minimum wages may apply depending on the sector.

• Gambia: Gambia’s minimum wage is fixed at GMD 50 (roughly EUR 0.68) per day.

• Kyrgyzstan: The minimum wage rate in Kyrgyzstan is set at KGS 2,460 (roughly EUR 25.23) per month.

• Nigeria: The minimum wage in Nigeria is fixed at NGN 65,000 (roughly EUR 65.08) per month.

• Sierra Leone: The minimum wage in Sierra Leone is currently fixed at SLE 600,000 per month (EUR 27.91).

Please note that we have only listed countries where an official minimum wage rate is in place.

Below you’ll find the national minimum wages for major countries in Europe, Asia and the Americas that don’t fall into the category of highest or lowest minimum wage.

Minimum wage by country in the Americas

• Argentina: In December 2023, the Argentinian minimum wage rose to ARS 156,000 per month.

• Bolivia: The minimum wage in Bolivia is currently set at BOB 2,362 per month.

• Brazil: Brazil’s minimum wage currently stands at BRL 1,320.00 per month.

• Canada: The federal minimum wage in Canada is currently set at CAD 16.65 per hour. The next revision of the minimum wage will take place in April 2024. Employers should know that the provinces in Canada are allowed to set their own minimum wages.

• Colombia: Colombia’s minimum wage is currently set at COP 1,300,000.00 per month. In addition, employers need to provide a monthly transport allowance of COP 140,606.00.

• Chile: The current minimum wage in Chile is CLP 460,000 per month. The minimum wage has been valid since September 2023.

• Mexico: On January 1, 2024, the daily minimum wage rate in the Free Trade Zone of the Northern Border of Mexico increased to MXN 374.89. In the rest of the country, employees must be paid at least MXN 248.93 per day.

• Peru: Employees in Peru are entitled to a monthly minimum wage of PEN 1,025.00.

• United States: The federal minimum wage in the United States is currently fixed at USD 7.25 per hour. It is valid for covered non-exempt employees. However, state minimum wages are often higher. The Department of Labor provides an up-to-date list of the state minimum wage laws.

Minimum wage by country in Asia

• China: Provinces and municipalities in China are allowed to set their own minimum wages which employers have to respect. In Shanghai, for instance, the minimum wage is currently set at RMB 24 per hour, which equals a minimum monthly salary of RMB 2,690.

• Hong Kong: The minimum hourly wage employers have to pay in Hong Kong is currently set at HKD 40. It became valid in May 2023.  

• India: India doesn’t have a national minimum wage. Instead, minimum wages are defined by provinces and industries. The worker’s level of qualification also plays a role when it comes to the minimum wage he or she is entitled to. The national minimum pay level stands at INR 178 per day.

• Malaysia: The minimum wage in Malaysia stands at MYR 7.21 per hour, which equals a minimum monthly salary of MYR 1,500.

• Philippines: Minimum wages in the Philippines depend on the region and on the sector (i. e. agriculture or non-agriculture). The current minimum wage in the National Capital Region ranges from PHP 533 to PHP 610 per day.

• Russia: The federal minimum wage in Russia is set at RUB 19,242 per month. It became valid on January 1, 2024. Depending on the region, different minimum wage rates may apply.

• Vietnam: Minimum wages in Vietnam depend on location. For this purpose, the country is subdivided in four high-level geographic areas, each of which has a distinct minimum wage. The minimum wage rates range from VDN 3,250,000 to VDN 4,680,000.

Minimum wage by country in Europe

Europe is the continent which counts the most high-paying countries in the world. However, there are huge differences in applicable minimum wage regulations.

• Belgium: Minimum wages in Belgium depend on the employee’s qualification, the position, and the region (i. e. Brussels region, Flemish region, and Walloon region). The national minimum wage any worker is entitled to is currently fixed at EUR 1,994.18 per month.

• Croatia: The national minimum wage in Croatia currently stands at EUR 840 per month. It became valid on January 1, 2024.

• Cyprus: The national minimum wage in Cyprus currently stands at EUR 1,000 per month (EUR 900 during the first six months of employment).

• Czech Republic: The current minimum wage in the Czech Republic is CZK 18,900 per month.

• Estonia: In the beginning of 2024, the national minimum wage of Estonia rose to EUR 820 per month. The minimum hourly pay rate is set at EUR 4.86.

• Greece: The national minimum wage in Greece stands at EUR 780 per month. The daily minimum wage is set at EUR 34.84.

• Hungary: The current minimum monthly remuneration is HUF 266,800 per month and HUF 1,534 per hour. Professional workers in Hungary are entitled to a monthly minimum salary of no less than HUF 326,000, while the hourly wage of such workers cannot be lower than HUF 1,874.

• Latvia: The current minimum wage in Latvia is EUR 700 per month.

• Lithuania: In January 2024, the national minimum wage in Lithuania rose to EUR 924 per month. This equals a minimum hourly wage of EUR 5.65.

• Poland: On January 1, 2024, the minimum wage in Poland rose to PLN 4,242 per month. The minimum hourly pay rate is set at PLN 27.70.

• Portugal: The minimum wage in Portugal is fixed at EUR 820 per month. Minimum wages in the Autonomous Regions of Azores and Madeira are slightly higher, with monthly rates of EUR 861 and EUR 850 respectively.

• Romania: The national minimum wage in Romania increased to RON 3,300 per month in October 2023. The minimum hourly pay rate is RON 19.96.

• Slovakia: The monthly minimum wage in Slovakia stands at EUR 750. The hourly minimum wage rate is set at EUR 4.31.

• Slovenia: The minimum wage in Slovenia has remained unchanged since January 2023. It is still set at EUR 1,203.36 per month in 2023.

• Spain: The minimum wage in Spain is currently fixed at EUR 1,080 per month.

• United Kingdom: Minimum wages in the United Kingdom depend on the worker’s age. The standard hourly minimum wage for workers aged 23 and older is currently set at GBP 10.42.

Adhering to local compensation rules is a key requirement for ensuring global employment and payroll compliance. However, this not only includes respecting each country’s minimum wage rates, but also complying with additional statutory requirements regarding employee compensation, such as:

• Mandatory transport and meal allowances,

• Annual bonuses (e. g. 13th salary),

• Holiday pay for annual leave,

• Social security contributions, and

• Other payroll taxes.

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Offering competitive compensation and benefits packages that comply with local regulations is one of the main challenges of managing a globally distributed team. However, keeping track of the changes in minimum wages around the world takes a lot of time and effort. A global payroll and employment solution like Lano can take this burden off your shoulders.

Our global network of trusted Employer of Record (EOR) and payroll partners can help you create the right compensation packages for your local hires, no matter where they are in the world. Book a demo with one of our international employment and payroll experts and learn more about how Lano helps you ensure compliance with global minimum wage laws and other compensation requirements.