Employers in a particular nation are legally permitted to pay their employees the minimum wage for a specific labor unit. In most cases, the minimum wage is calculated hourly or monthly.
However, it may also exist at a daily or weekly rate occasionally.
In the beginning, minimum wages were used to combat the exploitation of sweatshop employees. Still, they came to be considered a tool to assist lower-income families worldwide avoid exploitation over time.
By the turn of the century, most nations had passed laws establishing a minimum wage.
The advantages and disadvantages of the minimum wage:
Some argue that the greater labor costs will lead to inflation, which causes firms to raise their prices or lay off employees they can no longer afford to pay, resulting in more unemployment and more poverty as a result of higher wages.
According to those who favor raising the minimum wage, doing so would improve employees’ well-being, alleviate poverty and inequity, strengthen the economy’s buying power, and improve workers’ spirits.
Top 20 Highest minimum wage countries in 2020 (in US dollars):
- Australia – $14.54
- Luxembourg – $13.67
- New Zealand – $13.18
- Monaco – $11.88
- Ireland – $11.54
- France – $11.46
- United Kingdom, $11.37
- Netherlands – $11.21
- Belgium – $11.06
- Germany – $10.68
- San Marino – $10.55
- Canada – $10.33
- South Korea – $8.99
- Israel – $8.17
- Japan – $7.52
- Spain – $7.30
- United States $7.25
- Andorra – $6.72
- Slovenia – $5.84
- Taiwan – $5.26
It’s important to keep in mind that minimum wages in many nations outside the United States are modified yearly, so these rankings may change once worldwide data for 2021 is compiled.
America’s non-tipped minimum wage of $7.25 per hour will stay unchanged in 2020, the 17th highest worldwide but less than half that of Australia’s top earner. While the federal government sets the federal minimum wage, 29 states have increased it.
Also See: Median Income by Country 2022
Furthermore, several states have implemented or proposed laws to progressively raise the minimum wage by increments to attain a set rate over the next many years.
The minimum wage in each state differs due to initiatives like these. Although the federal minimum wage for tipped employees is $2.13 per hour, numerous states have adopted their laws to boost that level.
|Country||Hourly Minimum Wage||Annual Minimum Wage Earnings||2022 Population|