Global inflation, still high following the pandemic and Russia’s invasion of Ukraine, is starting to cool slightly this year. But people everywhere keep feeling the strain on their wallets. National governments, most recently in Britain, have been responding with minimum wage hikes.
Amid a cost-of-living crisis, the UK announced on Monday (Oct. 2) that it’s raising the minimum wage to at least £11 ($13.40) per hour. That hike, due to take effect next April, follows the guidance of the country’s Low Pay Commission. The change will provide a boost for roughly two million low-income earners in the UK, according to an announcement from chancellor Jeremy Hunt’s office.
Britain is following a global trend as nations seek to relieve financial burdens on their citizens amid a decline in purchasing power. Here’s how real minimum wages stack up worldwide, among Organisation for Economic Co-operation and Development (OECD) member countries providing data. A real minimum wage is the real value of the nominal minimum wage, taking inflation into account.
The countries with the highest minimum wages
France offers the top real minimum wage among the OECD group at $13.80 per hour, following a bump to the national standard in May. Australia’s minimum pay increased to $13.60 in July. That’s on par with Germany and Luxembourg, after the latter raised its rate in April. New Zealand takes fifth place with $13.20 per hour, a new minimum set in March.
The countries with the lowest minimum wages
Malta, Mexico, Brazil, Colombia, and Chile have the lowest nationally mandated pay for workers in real terms. In last place: Malta, with a guaranteed minimum wage of just $1.50 per hour. Mexico hiked hourly wages by 20% in 2023, offering a minimum of $1.80. Brazil’s minimum wage climbed to $2.40 per hour, a 1.38% increase, in May. Colombia’s minimum wage was set at $3 for the start of 2023, and Chile’s at $3.70 as of September.