August 27, 2026 | 06:01 pm
TEMPO.CO, Jakarta - Minimum wages vary significantly around the world, but comparing wage figures alone does not necessarily show how much workers can actually afford. A new comparison by Visual Capitalist, using 2024 data from the International Labour Organization (ILO), adjusts monthly minimum wages for purchasing power parity (PPP) to account for differences in local prices.
Switzerland has the highest minimum wage in the dataset at $3,804 per month, although its minimum wages are set regionally rather than nationally. Eight of the 10 countries with the highest figures are in Europe, while Australia and New Zealand are the only countries outside Europe in the top 10. The United States ranks 25th, at $1,257 per month based on its federal minimum wage.
Which Countries Have the Highest Minimum Wages
Switzerland tops the list, followed by Germany ($2,928), the United Kingdom ($2,902), and the Netherlands ($2,876) per month. Australia ranks fifth with an average salary of $2,819 per month. Belgium and Iceland round out the top seven with average salaries of $2,752 and $2,730, respectively. South Korea has the highest figure in Asia, at $2,362 per month.
Minimum-wage systems vary across countries, so the figures are intended as standardized comparisons rather than exact wage floors for every worker. For example, the U.S. figure uses the federal minimum wage, while Canada’s represents the median of provincial rates. Meanwhile, countries such as Sweden, Norway, Denmark, Finland, Austria, and Italy, where wage floors are largely determined through collective bargaining, have no comparable data.
Why the U.S. Minimum Wage Ranks 25th
The U.S. ranks 25th, in part, because its federal minimum wage has remained at $7.25 per hour since July 2009. Inflation has reduced its purchasing power by roughly 37 percent since then. While 30 states and Washington, D.C., have minimum wages above the federal rate, the comparison uses the federal minimum for its ranking.
How Purchasing Power Changes the Ranking
Adjusting wages for local prices can produce different comparisons. Poland, for example, ranks 15th at $2,141 per month, close to Spain at $2,248 and ahead of Japan at $1,839. In Latin America, Costa Rica leads at $1,093, showing how lower living costs can change the picture when minimum wages are measured by purchasing power.
These figures provide a clearer picture of the purchasing power of minimum wages in each country, but they do not factor in taxes or benefits. Since the adjustments are based on national averages, they may also overlook significant differences in housing costs across cities and regions.
Read: How Far Along Is Indonesia's Food Spoilage Scanner for Free Meals?
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