Minimum wage by country

Key takeaways

• Economic conditions and government policies define wage laws: Local governments adjust minimum wages to keep pace with inflation or economic shifts.

•  Not every country has a minimum wage: Some countries set high statutory wage floors, while others rely on collective bargaining or have no legally required minimum.

• Compliance management: Constant monitoring and partnering with the right employer of record (EOR) are essential to managing your global workforce.

Global minimum wage rates are typically easy to follow — until your workforce is scattered around the world. Differences in cost of living, economic development, and social policy vary from one country to the next. Your global payroll needs to account for every variation, and getting it wrong puts your business at risk.

This guide explores how a minimum wage works, which countries have the highest and the lowest minimum wages, and factors that influence these rates.

An overview of global minimum wages

Governments set minimum wage rates to protect workers and reduce the chances of exploitative pay. Many countries adjust minimum wages regularly based on inflation, labor market conditions, or policy changes. Some link increases to cost-of-living measures, while others adjust through legal processes. Because of this, wage tables can quickly become outdated unless they're sourced from current, authoritative sources.

Two concepts come up in wage discussions:

• Statutory minimum wage, which is set by the local government.

• Living wage, which is the income people need to meet their basic necessities like housing, food, and healthcare.

Staying on top of every country's minimum wage updates is a full-time job, but having the right partner makes all the difference. Use G-P EOR to build your global team in 180+ countries, without the stress of keeping track of living wages and statutory minimum wages. We handle all aspects of employment so you can hire anywhere confidently and offer competitive benefits packages to global teams.

“G-P feels like a true partner," explained Annie Diiorio, HR Manager at Canidium. "Their proactive approach and our customer success manager’s dedication have been game-changing, making all the difference in our experience. Onboarding new hires is easy for both our admin team and our global team members.”

Factors that influence a country’s minimum wage

Minimum wage rates change over time. Inflation, productivity gains, and political priorities drive these updates. In fast-growing economies, governments often adjust wages to support living standards. 

Technology adoption plays an important role, too. Digital payroll systems, workforce data, and labor analytics improve enforcement and transparency. These tools help regulators track compliance at scale and help employers manage change with lower risk.

A minimum wage isn't a universal standard. There are many factors that influence the wage floor for a job, including:

• The economic development level of a country

• Cost of living and inflation trends

• Legislation and labor policy

• Collective bargaining agreements (CBAs)

• Regional variations within countries

Global hiring adds an extra layer of complexity. You’re suddenly tracking local wage rules, updates, and exceptions across multiple countries. 

But you don’t have to do it alone. G-P Gia™ continuously monitors statutory changes across 50 countries and all 50 U.S. states to give you the most up-to-date compliance guidance. Get location-specific data on benefits and common provisions, including vision, health, retirement, and wellness, in your target countries, industries, or for specific roles.

Highest minimum wage countries

High statutory minimum wages reflect strong social support systems and special protections.

Nations with high statutory minimum wages

Here are examples of countries with the highest statutory minimum wages in the world:

• Australia: Australia's minimum wage is AUD 24.95 per hour (USD 16.87). Australia also outlines industry-specific wage rates under its modern awards system.

• Belgium: The minimum wage is currently EUR 2,154.11 a month (USD 2,517.33). The guaranteed minimum monthly income will increase by EUR 35 in April 2026. Belgium's strong social model underpins these wage levels.

• Canada: Canada doesn’t have a single federal minimum wage that applies to all workers. Each province has its own minimum wage, ranging from CAD 15–19.75 (USD 10.84–14.28), reflecting regional cost differences. 

• France: The statutory minimum wage is EUR 1,823.03 per month (USD 2,130.47), but varies for apprentices and professionalization contracts depending on the worker's age. France updates its minimum wages yearly, based on inflation and wage growth.

• Germany: Germany's minimum wage is EUR 13.90 per hour (USD 16.24), and will increase again in 2027 to EUR 14.60 (USD 17.06).

• Luxembourg: Among the world's highest, Luxembourg has a minimum monthly salary of EUR 2,703.74 (USD 3,159.70) for an unskilled adult worker and EUR 3,244.48 (USD 3,791.63) for a skilled adult worker. The minimum wage is lower for workers under 18. 

• Netherlands: The basic minimum age for workers 21 and older is EUR 14.71 per hour (USD 17.19). For workers under 21, the minimum varies based on age. The Netherlands also includes a statutory minimum holiday allowance and updates the minimum wage every six months.

Sector-specific high earners

Specific sectors address labor shortages and apply economic value through collective agreements or statutory wage orders. These minimum wages reduce wage compression and support workforce stability in essential industries. They also add complexity for global employers, as hiring decisions have to meet both national and sector rules.

Some governments use these wage bands to protect critical services and attract qualified workers in healthcare, technology, and energy sectors. These roles need training, certification, or safety compliance, highlighting their importance.

Lowest minimum wage countries

Some regions have low federally mandated minimum wages due to economic development, labor supply, and cost structures. Many countries with low wage floors rely on regional or sector rules. Others lack strong enforcement mechanisms. Official rates may also differ from the real pay practices.

Low minimum wages don't reflect total employment costs. When hiring globally, consider compliance, productivity, and operational risk alongside these wages.

Regions with lower wage floors

Here are examples of countries with the lowest national minimum wages, with figures reflecting statutory monthly or hourly baselines. These figures only support cost modeling. They don't reflect total employment expenses, benefits, taxes, and compliance costs, which can exceed base pay:

• Nigeria: Nigeria's minimum wage is NGN 70,000 per month (USD 49.32).

• Ethiopia: There's no national minimum wage, though public servants get a minimum wage of ETB 1,500 per month (USD 9.65).

• Bangladesh: For workers in the garment sector, the minimum wage is BDT 12,500 per month (USD 102.26). Other industries have sector-specific minimum wages set by the Minimum Wage Board. There’s no single national rate.

• Nepal: Nepal's minimum wage is NPR 19,550 per month (USD 133.50).

• Cambodia: The minimum wage is USD 210 per month in the garment, footwear, and travel goods sector. 

Regions with lower wage floors often share structural traits like large labor pools, informal employment, and developing infrastructure. 

The impact of the informal economy

The informal economy shapes wage data in developing markets. Many workers operate outside formal payroll systems, which means official minimum wages fail to reflect real earnings.

Limited enforcement drives this gap. Labor inspections may be infrequent, or employees may rely on verbal agreements with cash payments. This dynamic distorts wage statistics, as published minimums are likely to sit below market pay for skilled roles.

Multinational businesses rely on formal contracts, documented payroll, and auditable compliance to ensure transparency and accountability. In these countries, paying above the legal minimums is a sure way to attract talent. Higher wages support retention and productivity. 

Minimum wage laws give you a baseline, so market benchmarking is still important. Our global employment platform offers insights into competitive compensation and statutory requirements for specific roles and locations. As your EOR, we give you the tools to generate compliant employment contracts, automatically tailored to local laws and wage standards, lowering the chance of errors or penalties.

Countries without a national minimum wage

Countries like Brunei and Somalia don't have a national minimum wage. However, this doesn’t mean labor markets lack regulation. Wage governance can come from alternative frameworks. For example:

• Nordic regions: Countries like Denmark and Sweden rely on collective bargaining. Unions and employer groups negotiate binding wage agreements that cover most workers and industries.

• Singapore: Singapore's Progressive Wage Model sets wage pathways based on role, skill level, and training.

In many cases, negotiated wages exceed statutory minimums elsewhere. These systems also adjust more quickly to labor market shifts, as regulations occur at the sector level.

For global employers, compliance means careful mapping and planning. Wage rules depend on the role and location, so guesswork can be costly. 

Our global employment products use technology like our Global Compliance Engine and agentic AI to evaluate wage and contract requirements across markets. These tools give you accurate employment terms, pay structures, and benefits that align with local rules. 

Where are global minimum wages heading in the future?

Globally, minimum wages are likely to continue rising, driven by a combination of policy reforms, economic status, and labor market pressures. Real minimum wages have increased in many countries in recent years, with statutory floors rising faster than median wages in many Organisation for Economic Co-operation and Development (OECD) nations. This increase shows how governments are adjusting minimum wages upward as inflation and the cost of living increase.

Many countries are planning increases in 2026. For example, Colombia raised its 2026 minimum wage sharply to reduce inequality. EU member states keep narrowing wage disparities under new directives, while many U.S. states and regions plan incremental local increases.

Policy actions show a mix of targets. Some aim for living-wage benchmarks, while others focus on inflation or median earnings. Discussions about federal minimum wage increases are also ongoing in various jurisdictions.

What to expect in 2026: The pace and scale of increases vary by country, economic conditions, labor costs, and political consensus. Expect gradual minimum wage growth alongside continued attention to wage inequality and cost pressures in 2026.

Hire and pay global teams with G-P

Minimum wage requirements vary by country, sector, and role. Managing these rules manually is risky and can lead to penalties. 

G-P handles wage updates, payroll changes, and local requirements for you. With us, you can build your team in 180+ countries quickly and compliantly, without setting up local entities. Our platform gives you visibility into total employment costs with automated workflows to support speed and accuracy. 

“The peace of mind that came with G-P handling Japan’s intricate labor laws, payroll, and tax regulations was invaluable. It freed us from a huge administrative burden and allowed us to focus purely on our business goals." Esther Kang, HR Business Partner and Talent Acquisition Part Lead at LivsMed. 

Book a demo today to see our global employment products and EOR solutions in action.

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