Whether you’re a business person and pay salaries of employees or a happy employee who earns by working with a company, you would appreciate information about the current hourly wages around the world. Or at least be curious about it.
Knowledge is power. The information contained in this short read will add up to your knowledge base. Maybe you would appreciate the data, even just for the reason that you’ll be aware of how much people in other places are earning. Add to that, how much buying power do they actually wield. As you’ll see, this power will actually depend on the markets they operate on.
Let’s go down deeper, let’s take for example Australia — the country with the highest minimum wage in the world. However, it’s also one of the most expensive places to live in. And that’s also based on a worldwide stat. The minimum wage of $16 in this great continent doesn’t buy as much as you can in the US.
When you adjust Australia’s $16 to buying power, or what we call purchasing power parity, $16 is actually just $9.77. That’s almost half the value. See my point? There is a significant relationship between a country’s minimum wage and the price of commodities there, plus the standard of living in that particular country.
Ultimately, a more intelligent approach in the scheme of things, as you may have understood now, is to look at the PPP of a country. That’s the bottom line.
Moving on , after a more thorough study of the infographic designed by lisamahapatra and Published by International Business Time… we also see that the country bearing the highest “real” minimum wage is Luxembourg. After adjusting to PPP, the wage is actually $10.37. Furthermore, there are 9 countries with a higher real minimum wage than the U.S.’ according to The Organisation for Economic Co-operation and Development (OECD).
More interesting figures ensue below.