Keeping up to date on worldwide minimum wage legislation is essential for companies with a global or distributed workforce. You want to ensure that all your employees are receiving their salary accurately and that you comply with local labor laws.
Each country’s minimum wage system is different. Some have a national minimum wage, while others allow it to be determined by region or industry. In addition, some countries have no government minimum wage or leave it up to trade unions and CBAs to set the amount.
INS Global operates in over 80 countries, and our legal team is always up-to-date regarding minimum wage rates and distributed workforce management trends. This article outlines the 2022 worldwide minimum wage data for key international markets we serve in Europe, Asia, and North America.
Worldwide Minimum Wage: Highest and Lowest
Australia has long been the country with the highest minimum wage. This lead shows no sign of slowing down with a new increase that takes effect July 1st, 2022, bringing the hourly wage to AUS$21.38.
France, Germany, and the Netherlands also remain in the top ten minimum wage lists.
At the bottom of the minimum wage lists are countries like Kyrgyzstan, with a 970 Kyrgyzstani som per month (USD$12.20), and Sierra Leone, with a minimum of 500,000 leones (USD$37.97) monthly.
While it may be surprising, several major EU countries, such as Switzerland, Denmark, Sweden, and Norway, still have no government-mandated national minimum wage. In these countries, average worker wages vary according to the industry and collective bargaining agreements.
US Minimum Wage Variations
As a key global market, US minimum wage statistics remain largely determined by individual states. As of 2009, the federal minimum wage in the United States is $7.25 per hour. However, each state government is also free to determine its own minimum wage.
As of January 1st, 2022, the District of Colombia has the highest hourly minimum wage ($15.20), and Wyoming is the lowest ($5.15).
The federal minimum wage is mandatory for companies with an annual gross income of at least $500,000. However, the company must comply with the state standard if the state minimum wage is higher than the federal one.
APAC Countries Minimum Wages
While many may believe that minimum wages in Asia are uncommon, this is not true. Minimum wages exist in different forms across Asia, although many countries instead require them on a regional or provincial level.
Each province sets its own minimum wage in the PRC. Minimum wages are rising in 2022, with forty-six provinces having already raised the minimum.
Shanghai stands at the highest monthly minimum wage (RMB2590), and Beijing has the highest hourly salary (RMB25.30)
As of January 1st, 2022, Taiwan’s monthly minimum wage has been raised 5.2% to NTD25,250.
The hourly wage has also gone up to NTD168.
The national minimum wage remains at the same rate as 2020: 902 yen per hour.
Each prefecture also sets its own minimum hourly wage, which takes precedence in that prefecture.
Minimum wage categories are divided by agricultural and nonagricultural workers.
Every region determines its own minimum wage, although some states have increased their minimum wages by similar amounts in 2022.
There is no national minimum wage policy in India. Each state and industry sector decides their minimum wages.
There is no national minimum wage in Singapore; however, there is a minimum monthly salary for foreign workers; this number has recently risen to S$5000-5,5000.
The minimum wage in Indonesia is determined by each province and district.
As of May 1st, 2022, Malaysia’s national minimum wage has been increased to 1,500 ringgit monthly.
In January 2022, Bangladesh was found to have the lowest minimum wage in Asia at only 8,000 BDT per month.
EU Countries Minimum Wage
Rather than being decided at an EU-wide level, minimum wage in Europe can vary a lot. This means it will be important for companies to do research on the best places to set up in when entering the EU. It’s also important to note that many of these figures are also affected by collective agreements and European Union standards depending on the sector.
The minimum wage in Germany is set to increase in two stages in 2022. From July 1st, it will go from 8.82 euros to 10.45; on October 1st, it will be raised to 12 euros.
From January 1st, 2022, the gross minimum wage for full-time employees over the age of 21 has been increased to 1,725 euros a month.
Beginning January 1st, 2022, Spain’s gross monthly minimum wage will be raised by 3.6% to 1,000 euros, paid in 14 payments with an extra payment in the summer and Christmas as is standard in the country.
The minimum monthly wage in 2022 remains at 822.5 euros.
Italy has no national minimum wage; CBAs determine the minimum average.
Starting May 1st, 2022, the hourly rate will increase from 10.57 euros to 10.85. This is based on a traditional 35 hour week, and real amounts may differ when the French non-traditional approach to overtime is taken into account.
There is no government-mandated minimum wage in Switzerland.
Employing Talent Overseas with INS Global
Ensuring all employees in your distributed workforce are receiving their salaries correctly and on time can be a challenge. This is especially true if your company is spread across multiple markets and countries.
Statutory minimum wages are frequently changed, and new labor law legislation is passed each year. Failure to remain up to date and legally compliant can result in you having to pay expensive fees and fines.
With a global PEO or EOR partner like INS Global, you don’t have to worry about employee payroll, taxes, or any other staff processes. We take care of everything for you in full legal security and efficiency.
Our team is staffed with legal experts who will ensure that all your employees are taken care of and managed smoothly.
Contact us today to see how you can improve your overseas employees’ payroll experience.