Highest and lowest minimum wage in the world: Guide by country in 2025

When you employ a global workforce, understanding minimum wage compliance across international borders is crucial. Across various countries, the national minimum wage can swing dramatically—from places that set higher minimum wages to make sure workers have more robust baseline salary levels, to those that keep official minimum wages extremely low or even nonexistent.

Whether you already oversee payroll in multiple sectors, or you’re aiming to forecast labor costs before your company expands its global footprint, understanding minimum wage by country is more necessary than ever in our connected global economy. This guide will answer questions like:

• Who has the highest minimum wage?
• Where is the lowest minimum wage?
• Which countries still have no minimum wage at all?

Let’s dive in.

How does minimum wage around the world work?

A minimum wage is the lowest wage rate an employer can legally pay its employees. It’s typically set by the government to protect workers, though in some economies, powerful labor unions and collective bargaining agreements also help shape minimum wages. Depending on local regulations, the federal minimum wage might be uniform across a nation, while certain countries allow regional differences. Additionally, in some jurisdictions, certain sectors might have unique minimum wage rules.

Minimum wage laws serve several purposes. They aim to combat exploitative practices, help employees secure a living wage, and, in theory, boost consumer spending by helping the workforce earn more disposable income they can then spend. 

However, minimum wages can vary widely because each government calibrates its own laws according to its unique economy, labor market, socioeconomics, and other factors. Countries with stronger welfare frameworks or higher costs of living often set a higher minimum wage, while others set lower wage rates—or don’t specify any at all—to remain competitive in more labor-intensive sectors.

Factors that influence a country’s minimum wage

Many elements can determine how any government sets or adjusts its national minimum wage. In practice, these factors are deeply interrelated, reflecting each economy’s characteristics.

Cost of living adjustments

A high local cost of living typically drives up the minimum wage. Policymakers and collective bargaining bodies like trade unions review inflation metrics to adjust the current minimum wage. This is to help make sure all employees can afford rent, groceries, and other essentials.

Government regulations and labor laws

Each government enacts minimum wage laws, often shaped by historical labor movements, political priorities, and economic strategies. For example, in some countries, specific sectors—like manufacturing—have separate wage rates negotiated via collective bargaining agreements.

Economic strength and GDP per capita

A wealthier economy with a higher GDP per capita may have more resources to sustain higher minimum wages without risking inflation or job losses. Conversely, economies with fragile finances often keep minimum wages low.

Industry-specific minimum wages

Some economies enforce sector-based minimum wage tiers, acknowledging that certain sectors (like tech) generate higher profit margins and thus can pay workers a more robust hourly wage. Other sectors, such as agriculture or retail, may have lower minimum wage mandates.

What country has the highest minimum wage?

Where is the highest minimum wage in the world? The answer is Luxembourg. This small but prosperous nation frequently tops lists for its robust national minimum wage. Luxembourg’s workers benefit from monthly minimum salaries that are adjusted for both skill level and age category. For skilled talent, the monthly salary is just over $3,500 USD, while unskilled employees see monthly earnings just under $3,000 USD. Younger workers under 18 earn a slightly reduced wage rate, but it’s still one of the most generous baseline monthly salaries in the world.

Luxembourg’s high standard of living and small workforce allow the government to sustain this top-tier minimum wage. Still, local employers also rely on collective bargaining to shape wages in specific sectors, so the country is able to maintain a healthy balance between competitive business environments and strong worker protections.

Top 10 countries with the highest minimum wages in the world

Below are 10 countries that top global lists for their national minimum wage levels in 2025. Many of these also feature strong unions, robust economies, and well-established social safety nets. 

These top-tier wage champions generally offer workers a living wage, reflecting a commitment to ensuring the workforce can keep pace with rising living costs. Employers also often collaborate with unions and government bodies to keep the national minimum wage relevant in their dynamic economies.

Note that the rates are expressed in USD for ease of comparison.

1. Luxembourg

Cost of living is high, but collective bargaining and government policies ensure a strong base wage rate.

Current minimum wage:

• Skilled worker, 18 years and over: 3,568 USD per month
• 18 years and over: 2,974 USD per month
• 17-18 years: 2,379 USD per month
• 15-17 years: 2,230 USD per month

2. United Kingdom

The UK sets a national minimum wage that often increases annually to match inflation, with distinct tiers for apprentices and younger workers.

Current minimum wage:

• 21 years and older: 16.13 USD per hour
• Apprentices (under 19 years or in the first year of training): 9.97 USD per hour

3. The Netherlands

The Netherlands emphasizes universal benefits, often leading to collective bargaining outcomes that exceed the statutory national minimum wage in key sectors.

Current minimum wage: 15.84 USD per hour

4. Australia

Australia’s federal laws set a robust base hourly wage. Unions remain powerful in certain sectors, leading to higher minimum wages for many employees.

Current minimum wage: 15.28 USD per hour

5. Ireland

Over the years, Ireland has seen strong economic growth, allowing employers to absorb higher minimum wages while maintaining competitive labor markets.

Current minimum wage: 15.21 USD per hour

6. Belgium

Belgium enforces a national minimum wage, but many sectors negotiate minimum salaries via collective bargaining, often pushing actual wages above the statutory base.

Current minimum wage: 2,333.40 USD per month

7. New Zealand

New Zealand has consistently used collective bargaining and progressive labor policies to bolster minimum wages. Agricultural sectors might have specific rules, but they typically meet or exceed the national standard.

Current minimum wage: 13.86 USD per hour

8. Canada

In Canada, each province sets its own minimum wage. Overall, strong living standards push employers to pay above the base wage rate.

Current minimum wage:

• Alberta: 10.73 USD per hour
• British Columbia: 12.45 USD per hour
• Manitoba: 11.31 USD per hour
• New Brunswick: 11.20 USD per hour
• Newfoundland and Labrador: 11.45 USD per hour
• Northwest Territories: 11.95 USD per hour
• Nova Scotia: 11.23 USD per hour
• Nunavut: 13.60 USD per hour
• Ontario:
• General workers: 12.31 USD per hour
• Homeworkers: 13.53 USD per hour
• Students: 11.59
• Prince Edward Island: 11.45 USD per hour
• Quebec: 11.27 USD per hour
• Saskatchewan: 10.73 USD per hour
• Yukon: 12.84 USD per hour

9. Germany

Germany introduced a national minimum wage relatively recently (in 2015). Collective bargaining with unions is prevalent, particularly in manufacturing and public sectors.

Current minimum wage: 14.44 USD per hour

10. France

Known as the SMIC, France’s statutory minimum wage adjusts annually based on inflation and wage indexation. Additional pay scales exist in certain sectors.

Current minimum wage: 2,030.87 USD per month

8 countries with the lowest minimum wage in the world

At the opposite end of the spectrum, several countries implement extremely low minimum wage thresholds. 

In these countries, limited resources or transitional economies contribute to a lower official minimum wage, though actual wages may vary, especially in informal sectors or through unregulated employment arrangements.

Some are in the process of revising national minimum wage policies, while others rely on informal economies or collective bargaining at the local level.

India

India operates a complex system with varied minimum wage rates by state, area within the state based on development level (zone), industry, sector, occupation, and skill level. The system defines nearly 2,000 different types of jobs for unskilled workers and over 400 categories of employment. Minimum wage calculations include dearness allowances and other factors.

Current minimum wage: Starts at around 2.13 USD per day

Nigeria

Despite a statutory minimum, a large informal economy means compliance can be inconsistent, leaving many workers earning below the official threshold.

Current minimum wage: 43.62 USD per month

Uzbekistan

The government has introduced reforms to spur economic growth, but workers in certain sectors still face low wages.

Current minimum wage: 89.05 USD per month

Pakistan

Provincial differences exist across Pakistan, and some employers pay even less in informal sectors.

Current minimum wage:

• Balochistan: 131.84 USD per month
• Islamabad Capital Territory:
• Unskilled workers: 131.86 USD per month
• Semi-skilled workers: 5.80 USD per day
• Skilled workers: 7.44 USD per day
• Security guards: 167.49 USD per month
• Domestic workers: 0.63 USD per hour
• Part-time workers: 60.58 USD per month
• Khyber Pakhtunkhwa: 128.29 USD per month
• Punjab: Varies by industry
• Sindh:
• Unskilled workers: 131.89 USD per month
• Semi-skilled workers: 136.17 USD per month
•  Skilled workers: 163.62 USD per month
•  High-skilled workers: 170.60 USD per month

Armenia

The Armenian government occasionally revisits these rates, but many employees rely heavily on collective bargaining or second jobs.

Current minimum wage: 191.86 USD per month

Kazakhstan

Economic diversification efforts aim to raise living standards, but the national minimum wage remains low for many sectors.

Current minimum wage: 164.01 USD per month

The Philippines

Local wage boards in the Philippines set minimum wages by region, and collective bargaining often factors into private sector contracts.

Current minimum wage:

• Ilocos:
• Non-agriculture: 7.08 to 7.66 USD per day
• Agriculture: 7.08 USD per day
• Cagayan Valley:
• Non-agriculture: 8.45 USD per day
• Agriculture: 8.10 USD per day
• Domestic workers: 105.70 USD per month
• Central Luzon - Province of Aurora:
• Non-agriculture: 8.80 USD per day
• Agriculture: 8.10 USD per day
• Domestic workers: 105.70 USD per month
• Retail/service: 7.22 USD per day
• Central Luzon - Province of Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales:
• Non-agriculture: 9.24 USD per day
• Agriculture: 8.71 USD per day
• Domestic workers: 105.69 USD per month
• Retail/service: 9.07 USD per day
• Calabarzon:
• Non-agriculture: 6.78 to 9.15 USD per day
• Agriculture: 6.78 to 8.43 USD per day
• Southwestern Tagalog Region: 5.79 to 6.25 USD per day
• Bicol Region: 7.31 USD per day
• Western Visayas:
• Non-agriculture: 7.92 to 8.45 USD per day
• Agriculture: 7.75 USD per day
• Central Visayas:
• Non-agriculture: 7.39 to 8.24 USD per day
• Agriculture: 7.31 to 8.06 USD per day
• Eastern Visayas:
• Non-agriculture: 7.13 to 7.39 USD per day
• Agriculture: 6.60 to 6.86 USD per day
• Retail/service (employing 10 workers or fewer): 6.60 to 6.86 USD per day
• Retail/service (employing 11 workers or more): 7.13 to 7.39 USD per day
• Cottage/handicraft: 6.60 to 6.86 USD per day
• Zamboanga Peninsula:
• Non-agriculture: 7.29 USD per day
• Agriculture: 7.06 USD per day
• Northern Mindanao:
• Non-agriculture: 7.71 to 8.12 USD per day
• Agriculture: 7.50 to 7.90 USD per day
• Davao Region:
• Non-agriculture: 8.98 USD per day
• Agriculture: 8.89 USD per day
• Soccsksargen:
• Non-agriculture: 7.34 USD per day
• Agriculture: 6.97 USD per day
• Service/retail: 6.97 USD per day
• Mindanao Region:
• Non-agriculture: 6 to 6.35 USD per day
• Agriculture: 5.56 to 5.91 USD per day
• Cordillera Administrative Region: 7.57 to 8.28 USD per day
• Caraga Region: 6.78 to 7.31 USD per day
• National Capital Region:
• Non-agriculture: 10.74 to 11.36 USD per day
• Agriculture: 10.09 to 10.71 USD per day

Ukraine

Political and economic instability have hindered wage growth, but the government continues to revise minimum wage laws to match living cost changes.

Current minimum wage: 194.20 USD per month

9 countries without a minimum wage

Some countries do not have a legally mandated national minimum wage. In these locations, wages are often set through collective bargaining agreements, market dynamics, or strong social welfare systems.

These countries show that strong labor unions and robust welfare systems can maintain high living standards even in the absence of a formal federal minimum wage.

Austria

Employers and unions rely on collective bargaining to shape wage structures in key sectors.

Denmark

A tradition of union negotiation means the government has no statutory federal minimum wage in Denmark. Collective bargaining covers most workers.

Iceland

Iceland similarly uses union contracts as the framework for wage setting, with minimal state intervention on a national minimum wage.

Finland

Wages in Finland are organized primarily through extensive collective bargaining, with varied rates across sectors.

Norway

Norway relies on union negotiations for wage determination, with no official national minimum wage.

Italy

Wages are typically governed by union-led collective bargaining in Italy, so a national minimum wage law is absent for many sectors.

Sweden

Again, union negotiations play a major role in determining baseline hourly wage rates for workers in Sweden.

Switzerland

Some cantons have introduced their own guidelines, but no nationwide national minimum wage exists in Switzerland. Collective bargaining frequently decides actual wage rates.

Singapore

While there is no universal minimum wage in Singapore, government policies and sector-specific guidelines help shape wages, supplemented by progressive employment laws.

Highest minimum wages by region: A global overview

Let’s take a regional look at high minimum wages, focusing on the countries known for paying the highest minimum wage or having strong collective bargaining frameworks.

Europe

• Luxembourg: 2,000-3,500 USD per month
• Netherlands: 2,700 USD per month
• Ireland: 2,600 USD per month
• Germany: 2,500 USD per month
• United Kingdom: 2,800 USD per month
• Belgium: 2,300 USD per month

Central and South America

• Costa Rica: 521 USD per month
• Uruguay: 537 USD per month
• Chile: 526 USD per month
• Ecuador: 478 USD per month
• Dominican Republic: 457 USD per month

North America

• Canada: 1,800-2,200 USD per month, depending on province
• United States: 1,256 USD per month
• Mexico: 300 USD per month

Asia

• South Korea: 1,400 USD per month
• Japan: 1,150-1,400 USD per month, depending on prefecture
• Taiwan: 880 USD per month
• Hong Kong: 890 USD per month

Easily manage global payroll with Rippling

Rippling’s global payroll services and software gives you everything you need to run a global team—from local compliance and currency conversion, to onboarding, offboarding and everything in between.

With Rippling, you can:

• Manage domestic and international teams in a single system
• Seamlessly pay workers around the world in their local currency without waiting for any bank transfers or conversions
• Automatically calculate and file payroll taxes for your employees globally 
• Sync hours, time off, deductions, and more with payroll from a single global system
• Save hours of reconciliation work each month with payroll and expense data that's automatically categorized and synced to your general ledger
• Build unified reports using both your domestic and international HR data
• Easily build custom workflows to notify people of important changes and automate administrative tasks—like triggering a reminder to pay a bonus

And Rippling makes compliance—at home and abroad—effortless, with guidance when you need it and automation when you don’t. For example, global minimum wage enforcement is a breeze when Rippling automatically flags risks and noncompliance based on employees’ locations, ages, and other data.

Highest minimum wage in the world FAQs

Below are a few commonly asked questions about minimum wage:

How much does Luxembourg pay per hour?

Luxembourg’s national minimum wage for skilled workers often exceeds 15 USD per hour, translating to over 2,000 USD in monthly earnings—or even over 3,000 for skilled workers. Unskilled positions generally start around 2,200 USD monthly for the youngest workers, though collective bargaining can raise these figures in specific sectors.

Which country has the highest salary and low cost of living?

While Luxembourg has the highest minimum wage, its cost of living is also quite high. Some argue that New Zealand strikes a balance with a strong national minimum wage—currently about 2,400 USD monthly—alongside a relatively reasonable cost structure. However, “low cost of living” can be subjective, so it’s best to compare local housing, utilities, and general expenses across countries.

Which country offers the best wages for remote workers?

This depends on the sector and skill set. Many employees with advanced tech or finance backgrounds find countries like Canada and the US particularly appealing due to high wage floors and stable economies. Others look to places across Europe, as well as Australia and New Zealand, thanks to robust social services, reliable employment protections, and strong collective bargaining frameworks that can drive higher minimum wages in certain sectors.

This blog is based on information available to Rippling as of June 5, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.