Countries where the minimum wage is higher than America

Recently, the federal minimum wage in the United States has become a hot issue. Various groups protested and went on strike demanding minimum wage at a rate of $ 15 per hour. For example, McDonald's employees have also announced pay increases. For many immigrants from post-Soviet countries, the salary in the United States seems very high, but there are many countries in the world where it is higher. Go Banking Rates.

Of course, states can set their own minimum wages, and many of them set them above the federal minimum (for example, in New York State the minimum wage is $ 12,5 an hour, and in the city - $ 15 an hour). However, five states do not have a set minimum wage, and the federal minimum of $ 7,25 has not increased since 2009.

All of this begs the question: is this a purely American problem or are other countries facing similar minimum wage problems? It turns out that although the United States does not have the lowest minimum wage, the United States, according to the OECD for 2020, is not in the top ten.

Let's take a look at each of the countries where the minimum wage is higher than the United States, other than the United States itself.

Соединенные Штаты Америки

• Minimum hourly wage: $ 7,25
• Minimum annual wage: $ 15.

The federal minimum wage is a hotly debated topic in the United States. Most states have established their own more high minimum wages... Although five states do not have a set minimum wage: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Georgia and Wyoming have their own minimum wages, but they are actually below the current federal minimum.

One of the reasons the federal minimum wage leaves a lot to be desired is the process of raising the minimum wage. According to Pew Research, the majority of Americans (62%) support an increase in the minimum wage. But this is difficult to do because the federal minimum wage increases jobs. The United States is one of 17 countries that legislate for minimum wages. In the United States, this means that an increase in the minimum wage is possible only if Congress passes the bill and the president signs it.

South Korea

• Minimum hourly wage: 7,27 dollar.
• Minimum annual wage: $ 18.

Immediately ahead of the US is South Korea with a minimum wage of $ 7,27. Although it was only two cents higher than the US in 2020, South Korea is increasing the minimum wage. In 2021, the minimum wage was 8720 won ($ 7,60) per hour. In addition, South Korea has already announced an increase to 2022 won ($ 9) per hour by 160. This increase will take effect on January 8, 1.

The $ 8 an hour fee for 2022 was a compromise for South Korea. Business groups in the country wanted an increase to $ 7,70. But the working groups were keen to increase it to $ 9,40. While the workgroups did quickly cut their requests down, they ended up settling at the $ 8 an hour minimum for 2022.

Spain

• Minimum hourly wage: $ 7,25
• Minimum annual wage: $ 15.

Spain was one of the countries that provided generous financial assistance to its citizens during the pandemic. Now the European country is trying to narrow the wealth gap by raising the minimum wage. In 2020, it was only three cents higher in Spain than in America. The country now wants to increase the minimum wage by € 250 ($ 295) per month. If adopted, this would increase the current minimum of € 950 to € 1200 per month ($ 1). Thus, the annual minimum wage will be about $ 417 per year.

Israel

• Minimum hourly wage: $ 8,27
• Minimum annual wage: $ 18.

In 2020, the minimum monthly wage in Israel was NIS 5300. This amount remained unchanged throughout 2020. However, it is the first country on the list that is starting to separate somewhat from the United States and other lower ranked countries. But according to Trading Economics, there were 2015 workers in Israel in 700 who were paid less than the minimum wage. This is a lot, especially for a country with a population of less than 000 million people.

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Japan

• Minimum hourly wage: $ 8,27
• Minimum annual wage: $ 17.

In Japan, the minimum rate was $ 8,43, but the country is also going to raise it. In the summer of 2021, a government commission in Japan voted to raise the minimum wage by a record 28 yen to 930 yen. That's an hourly rate of about $ 8,50 an hour. If approved, it will be the largest increase in Japan since 2002. In addition, in Tokyo, the minimum wage will be 1041 yen, or about $ 9,50 an hour. In rural areas, the minimum rate is much lower at 820 yen, or about $ 7,50 an hour.

Canada

• Minimum hourly wage: $ 10,18
• Minimum annual wage: $ 21.

Canada is the first country on this list with a minimum wage of over $ 10. In 2020, the minimum wage was $ 10,18 an hour. But Canada is another country that already has plans to raise the minimum wage. She will increase the minimum wage to the $ 15 amount demanded by many Americans. This increase will take effect on December 29th.

Canada will have one of the highest federal minimum wages in the world. However, as in the US, there is still the possibility that the provinces of Canada will have higher minimum wages. In this case, the minimum province has priority.

Germany

• Minimum hourly wage: $ 10,18
• Minimum annual wage: $ 21.

Germany has also raised the minimum wage several times in recent years. The minimum wage in 2015 was € 8,50 ($ 10) and rises every two years, if not more often. To this end, Germany has raised the minimum wage in both 2019 and 2020. Expatica says some groups are pushing for a minimum wage of € 12, just over $ 14. At the moment, however, the minimum wage in Germany remains at around $ 11.

Expatica also notes that Germany's minimum wage laws do not apply to the growing number of freelance workers or internships of less than three months.

Belgium

• Minimum hourly wage: $ 10,18
• Minimum annual wage: 22, 100 dollars.

In 2020, the minimum wage in Belgium was $ 10,68, one percent higher than Germany. Belgium is unique in some ways in that it has both a federal minimum wage and wage standards set at the sectoral level through collective bargaining agreements. Thus, different committees in different sectors of Belgium set their own minimum wages. This includes cleaning, transportation, electricians and food processing. These minimums take precedence over the national minimum wage. However, if the sector does not have its own minimum wage rate, then the national minimum wage rate is used.

Netherlands

• Minimum hourly wage: $ 10,18
• Minimum annual wage: $ 24.

Labor law in the Netherlands does not set a specific minimum hours. According to the government, the number of hours worked can vary from one enterprise to another. It only has monthly lows, so its hourly lows are “indicative only”. At the same time, the government meets twice a year, on January 1 and July 1, to revise its labor legislation. The country has collective bargaining agreements under which employees work 36, 38 or 48 hours a week. Thus, the Netherlands is not concerned with the hourly wage, but how much people earn each month or year.

United Kingdom

• Minimum hourly wage: $ 11,01
• Minimum annual wage: $ 22.

The United Kingdom has both a minimum wage and a living wage, but there are prerequisites for that. To be eligible for the UK National Minimum Wage, you must have reached the “high school leaving age”, which is 16 years old. However, in England you must complete additional education or training before the age of 18. In addition, the UK has a national minimum subsistence level, which is provided to persons aged 23 and over. In the UK, there are separate minimum wages for those over 23, 21 to 22, 18 to 20, up to 18 and for students.

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Ireland

• Minimum hourly wage: $ 11,01
• Minimum annual wage: $ 23.

At the beginning of 2021, the minimum wage in Ireland was 10,20 euros (about $ 12). However, there are some caveats regarding the minimum wage. One important caveat is that, as in the United Kingdom, there are lower rates for those under 20:

• Minimum wage at age 19: € ​​9,18.
• At the age of 18: € 8,16.
• Minimum wage under 18: 7,14 euros.

Until March 2019, there were internship rates in Ireland, after which they were canceled. This was part of the Employment (Miscellaneous) Act 2018.

France

• Minimum hourly wage: $ 11,01
• Minimum annual wage: $ 21.

In France, the minimum wage applies to all working adults, regardless of age and experience. However, as in some other European countries, individual industries in France can set higher minimum wages based on collective bargaining agreements.

These agreements are concluded between trade unions and employers. They can increase the minimum wage for some sectors in France. The minimum wage in France increased in 2019, although growth in the minimum wage has been slow in recent years. However, it is the fourth highest minimum wage in the world.

New Zealand

• Minimum hourly wage: $ 12,06
• Minimum annual wage: $ 25.

New Zealand has one of the highest minimum wage rates in the world. While the above number is the OECD figure from 2020, the rate as of April 2021 is NZ $ 20,00, or slightly above $ 14 per hour. However, there are lower minimum rates for interns and a “start-up” rate. The latter two have the same rate - NZ $ 16,00 per hour, or almost $ 11,50 per hour. There is no minimum wage in New Zealand for those under the age of 16. But when a worker turns 16, he must be paid the appropriate minimum wage.

Australia

• Minimum hourly wage: $ 13,53
• Minimum annual wage: $ 26.

New Zealand's neighbor Australia has the second highest minimum wage in the world. Australia is not number 1. And the number one country accounts for a tiny fraction of Australia's size in both physical size and population.

In Australia, the minimum wage is reviewed annually by an independent commission. In 2021, she approved a 2,5% increase in the minimum wage to A $ 20,33. This amounts to about $ 15.

However, for certain classes of workers, such as apprentices, trainees and junior workers, a different minimum rate may apply.

Luxembourg

• Minimum hourly wage: $ 13,53
• Minimum annual wage: $ 29.

Luxembourg is a small landlocked country bordering Belgium, Germany and France. Although it is home to less than 1 million people, it has the highest minimum wage in the world. In 2020, that figure was $ 13,79, but has increased since then. In addition, there are higher rates for skilled and unskilled workers. Current hourly lows:

• Skilled workers: € 15,27 (about $ 18)
• 18 years and older: € 12,73 (about $ 15)
• 17-18: € 10,18 (about $ 12)
• 15-17 years old: € 9,55 (about $ 11,25)

As you can see, while Luxembourg has a much higher minimum wage for its skilled workers, even the minimum wage for those aged 15-17 is relatively high. After all, that's $ 4 more than the US federal minimum wage.