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Top 10 Countries With The Highest Minimum Wage
Minimum Wage is the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, and which cannot be reduced by collective agreement or an individual contract.
The International Labour Organization (ILO) defines Minimum Wage as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, and which cannot be reduced by collective agreement or an individual contract.”
Knowing the minimum wage rates is essential whether you are employed in your native country or intend to migrate to another country to continue working. This is so because it is against the law for businesses or government entities to pay employees less than the minimum wage in developed nations.
The International Labor Organization’s concept of the minimum wage is accepted and used in more than 90 nations worldwide. Some nations pay considerably lower minimum salaries than others, well below the ILO guideline. Other economically weak and underdeveloped nations with fewer businesses and employment prospects are unable to achieve the ILO’s minimum wage criterion.
Due to the potential for financial hardship, minimum wage policies and legislation do not permit employees to accept positions that pay less than the minimum salary for employees. A worker has the legal authority to notify any business or government organization that pays less than the legally mandated minimum wage rates. Any employee who doesn’t comply with this is likewise in violation of the law.
Let’s have a look at some of the nations with the highest minimum wages in the world in light of the aforementioned statistics.
You should be aware that a variety of criteria, including the cost of living, are taken into account when determining the minimum wage. Therefore, before accepting any minimal wage employment, you should think about your cost of living.
Australia, with a minimum wage of 14.54 USD per hour, has the highest minimum wage in the world overall. Although Luxembourg, Ireland, and France are among the nations that follow behind, they are all members of the European Union and have high average yearly incomes.
List of Top Countries With The Highest Minimum Wage
In this post, we list the top 10 countries with the highest legal minimum wages along with their salaries.
1. Australia
Australia now has the highest minimum wage in the world, at US$12.10 per hour. This $12.10 represents take-home pay rather than gross income before taxes. This minimum wage is required by law to be paid by all employers in Australia, or they risk legal consequences.
Australia continues to hold the record for having the highest minimum wage in the world. Australia’s minimum wage, set by the Fair Work Commission, is projected to be $18.29 per hour (including taxes and other fees), or $694.90 per week, as set by the Australian Federal Government.
The majority of Australian workers are employed under an Award system, which is largely based on the region, age, and industry of an employee.
It is important to remember that the $18.29 per hour minimum wage only applies to Australian workers who are at least 21 years old and are not covered by any kind of “agreement” or “award.” For Australian workers under the age of 16, the minimum wage is set at $6.73 per hour.
2. Luxembourg
In terms of GDP per person, Luxembourg is among the richest nations in the world. This Western European nation is a small one.
Luxembourg maintains its position as the nation with the second-highest minimum wage in the world based on economic growth, political stability, and national norms.
Unskilled workers over the age of 18 are paid a minimum wage of €11.5525 per hour. The total comes to €1,998.59 a month. Within that age range, skilled and professional workers receive a 20% raise in the minimum pay.
Luxembourg is a highly developed economic and technological nation with the greatest global GNP per capita. Its land borders are shared with nations including Belgium, Germany, France.
Tourism, biotechnology, chemicals, freight transportation, engineering, telecommunications, information technology, aluminum, glass, metals, steel, construction, real estate services, banking, and financial services are among the top businesses in the nation.
3. New Zealand
The standard minimum salary in New Zealand is 20 NZD, or roughly 13.18 to 13.56 USD. The majority of workers in the nation are subject to this rate.
The biggest exception to this norm is that certain employees who are just starting out in their careers or who are in training only receive 16 NZD (10.85 USD). However, after a brief period of employment, they advance to the regular wage.
Other exemptions relate to the regulations set forth in the Minimum Wage Act of 1983. The national minimum pay for employees under this rule is different for people under the age of 16 and the majority of prisoners.
4. Monaco
The current minimum wage in Monaco is €10.15, or between 11.53 and 11.88 USD. However, the great majority of workers earn more than this.
The municipality’s typical monthly income is €4,410 ($4,010 USD), or around €27.56 ($31.31 USD) per hour. The top 25% of workers, on the other hand, earn an average of €72.5 per hour (82.38 USD) or more than €11,600 a month (13,180 USD).
5. Netherlands
The minimum wage for full-time employees in Holland is 10.14 euros ($10.27) per hour. However, those under the age of 21 receive less.
6. United Kingdom
In the UK, the hourly national minimum wage is £9.50 ($11.43). The rate that individuals receive is age-dependent, like in many other nations.
The salary rate is typically based on your age in most European nations, which is also frequently the case in the UK.
Workers must be over the age of 23 to receive the full salary of $12.33 per hour; those between the ages of 21 and 22 receive $11.57; and those between the ages of 18 and 20 receive $9.09 per hour.
7. Belgium
Every Belgian worker who is 21 years of age or older receives the minimum wage of $10.16 an hour. This equates to the $1,673 federal minimum wage each month.
However, the minimum monthly wage is slightly raised to $1,718 for an employer who is 21 and a half years old and has worked for six months.
The Belgian minimum salary is $1,738 per month for a worker who is 22 years old and has a 12-month contract. Such an employee receives “extensive social benefits” in addition to their pay.
8. Ireland
Ireland continues to pay its minimum hourly wage of €9.55, as well as sub-minimal rates for workers under the age of 18.
Employees under the age of 18 are paid 70% of the national minimum wage of €9.55 per hour, while those over 18 are paid 80% of that amount throughout their first year of employment.
There is a 10% rise from the initial 80% in the second year of operation. Therefore, a worker of this type who is over the age of 18 is paid a minimum hourly rate equal to 90% of €9.55.
Irish workers receive a minimum salary ranging from 75% to 90% of the national hourly minimum, which is €9.55, in some types of training as well.
9. Germany
With a population of 83.3 million, a GDP of $3.7 trillion, GDP growth of two.22 percent, and a percentage of 6.2 percent, Germany is a country in Western Europe with a pay rate of $12.55 per hour that has been rising despite the pandemic.
10. France
With a minimum wage of $12.31 per hour, France is another country in the world with the highest minimum wage. It also boasts the most straightforward pay system.
The population of France, a rural nation in Western Europe with Paris as its capital, is roughly 63.5 million, and it has a 7.9 percent unemployment rate and a $2.6 trillion GDP.
Conclusion
The minimum wage regulations are designed to stop businesses from exploiting their employees. They ensure that each employee receives equal treatment according to their level of experience and individual contribution to the expansion of the company.
However, as the list of nations with the highest pay shows, several still do not. A minimum wage’s detractors claim that forcing companies to pass on higher labor expenses to consumers will lead to inflation.
They further claim that businesses may fire employees, which would increase unemployment. However, many who support minimum wage legislation claim that it stimulates the economy by raising consumer purchasing power, hence lowering poverty.
The lowest sum of money that employers in a nation are permitted by law to pay their employees for a specific unit of work is known as the minimum wage.
Below is a list of the Top Countries with the Highest Employees Pay in no particular order;
- Australia
- Luxembourg
- New Zealand
- Germany
- Belgium
- United Kingdom
- Monaco
- France
- Netherlands
- Ireland
Read More:
Countries with the Highest Paying Tax
Menial Jobs that pay $2000 in the United States
Sources:
Afterschoolafrica, Mappr.co, Bscholarly.com