5 Countries with the Highest Minimum Wage

5 Countries with the Highest Minimum Wage

5 Countries with the Highest Minimum WageAccording 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).

5 Countries with the Highest Minimum Wage


3. Netherlands – RM9,978.68 per month / RM2,302.50 per week / RM460.57 per day

Unlike most other countries, the Netherlands does not set its minimum wage rate by the hour but by the day, week, and month. The European country will also review its rates twice yearly, on 1 January and 1 July.

Starting last 1 July, the wage for workers aged 21 and over in the Netherlands is set at 1,995 euros (RM9,978.68) a month, 460.40 euros (RM2,302.50) a week and 92.08 euros (RM460.57) a day.

4. New Zealand – RM62.71 per hour / RM501.66 per day / RM2,508.32 per week

The minimum wage in New Zealand covers all workers aged 16 and over. Still, it is differentiated by job level, i.e., adult, entry-level, and trainee.

Adult workers’ rate for an hour of work is NZ$22.70 (RM62.71). For a full day or eight hours, the rate is NZ$181.60 (RM501.66), while for a week or 40 hours, the rate is NZ$908 (RM2,508.32).

This allows workers in New Zealand to earn at least about RM10,000 per month.

5. United Kingdom – RM60.89 per hour

Like many European countries, the United Kingdom (UK) also differentiates its minimum wage rates according to age. There are five designated categories, namely 23 years and above, 21 to 22 years, 18 to 20 years, under 18 years, and trainees.

The minimum wage set for workers aged 23 and above is 10.42 pounds sterling (RM60.89) per hour.

This means those who work 40 hours a week can earn about RM2,435.55 a week and about RM9,700 a month.

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Anisa is a writer who focuses on career and lifestyle topics in an effort to motivate both job searchers and employers towards greater fulfillment in their professional lives.

Reach me at anisa@jobstore.com.

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