What is the Minimum Wage?
Before you go to the list of the minimum wage, let us first define it. A minimum wage is the lowest that workers can get from their employers, as indicated by contract or law. At the end of the 20th century, minimum wage legislation was introduced to some countries to halt worker exploitation activities in sweatshops and help lower-income families.
However, there were opposing views regarding the minimum wage. Opponents argue that it would increase poverty and unemployment since it would be hard for low-wage workers to find work. Contrary to that, supporters say that it improves workers’ living standards, reduces inequality, and boosts employee morale.
Why is Understanding the Minimum Wage Important?
Small-to-Medium Businesses and Enterprises are challenged with federal compliance regulations. According to a survey conducted, 42% of companies are unsure and uncertain about their compliance management practices. Most of the time, Human Resource personnel are the ones who shoulder the struggles of managing their company’s compliance. In most cases, HR departments are understaffed and lack resources. It would take a toll on them to keep up with the local regulations’ rapid changes, such as tax, payroll, employee benefits, and minimum wage increases.
The breakdown of the countries with the highest minimum wage for 2021
At the first spot, Luxembourg obtains the highest minimum wage around the world at $13.78 per hour. In fact, there was a 20% increase for skilled workers (ages 18 and above). While for the adolescent workers, there was a decrease by 20-25%. The rise in the minimum wage was due to the fall in the consumer price index.
According to the World Population Review, the projected increase in Luxembourg’s total population in 2020 was 572,000 and is expected to have a population growth of 2.5%.
The spot for the second-highest minimum wage belongs to Australia. Minimum wage earners can earn $12.14 per hour. With a 25.5 million population in 2020, it is projected to grow to 42.68 million in 2099. In addition, Australia counts for mass migration due to substantial labor demand.
France has a minimum wage of $11.66. In 2045, France is expected to reach its maximum total population of 67.88 million.
4. New Zealand
With its current total population of 4,847,803, New Zealand has a minimum wage of $11.20. Based on the United Nations estimates in 2012, New Zealand lost citizens to migration. However, it was changed since there was a significant increase in net migration and still expected to continue.
Minimum wage earners in Germany are paid at the amount of $10.87, landing at the fifth spot. Its total population is projected to peak at 83.9 million at the end of 2021. In fact, the current net migrations rate per day in Germany is 833.
Employers in the Netherlands pay their minimum wage employees $10.44. Based on the World Population Prospects estimates, the Netherlands is growing at a rate of 0.22% per year, which is relatively slower compared to other countries.
At the seventh spot, Belgium has a minimum wage of $10.44. Since Belgium has a 30% population of people who are approaching retirement, it is expected to have a decrease in the working population.
8. United Kingdom
Landing at the eighth spot, United Kingdom (UK) has a minimum wage of $10.34. The figures collected by its Office of National Statistics estimated that the United Kingdom’s total population would surpass 75 million by 2060.
Minimum wage earners in Ireland receive a salary of $9.62 per hour. According to the World Population Review, its total population is projected to have a moderate growth rate throughout the 21st century.
At the tenth spot, Canada has a minimum wage of $9.52 per hour. Canada is still underpopulated despite the steady pace population growth rate. It also offers a lot of job vacancies. Besides, Canada is encouraging immigrants to settle and work there. More population means more economic prosperity for Canada.
Any organization or business must stay updated on the changes in the minimum wage of various countries around the world, especially if you have foreign remote employees. It will guide you on how to pay your employees with compliance.
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