According to the International Labor Organization (ILO), the minimum wage means the wages employers must pay workers for work performed during a specific period, which cannot be reduced through collective agreements or individual contracts.
The implementation of the minimum wage has spread worldwide, including in Malaysia. On 1 May 2022, the mandate set for workers in Malaysia is RM1,500 per month.
According to the World Economic Forum (WEF), as many as 84 percent of the world’s countries have included minimum wage orders in their respective national legislation as of 2020.
The amount varies by country, and even the method of setting it differs. Some countries use monthly, weekly, or hourly wage calculations. The amount will vary according to the number of working hours stipulated in the country’s labor laws.
Here are 5 countries with the highest minimum wage rate in the world:
1. Australia – RM69.44 per hour / RM2,638.78 per week
Australia currently has one of the highest minimum wage rates in the world. Starting last 1 July, the minimum wage in the country was increased to AU$882.80 (RM2,638.78) a week or AU$23.23 (RM69.44) an hour. This allows workers in the country to receive a minimum salary of approximately RM10,000 per month.
The minimum wage order in Australia covers all workers aged 21 and over. For workers 21 and under, trainees, and people with disabilities (OKU), the rate is different.
2. Luxembourg – RM12,859.39 per month
Luxembourg may not be as famous as other European countries. Still, they have excellent economic development and a standard of living.
For unskilled workers aged 18 and over, the minimum wage is set at 2,570.93 euros (RM12,859.39) per month. For the skilled, it reaches 3,085.11 euros (RM15,431.24) per month.
Luxembourg also sets a minimum wage for working 17 to 18-year-olds (2,056.74 euros/RM10,287.49 per month) and 15 to 17-year-olds (1,928.20 euros/RM9,644.56 per month).
