Guide to Minimum Wage by Country in 2025: A Global Overview

Country By Minimum Wage In 2025

Despite the ongoing debate over what constitutes an adequate minimum wage, it is a widespread tool in labor regulation, adopted by over 90% of countries globally. Here’s a breakdown of minimum wage rates globally:

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Worldwide, minimum net monthly wages vary from $46 in Nigeria to the highest minimum wages of 3,254 U.S. dollars in Luxembourg as of January 2025. Minimum wages must be seen in relation to price levels in a country. One popular way to measure purchasing power is the Big Mac Index. This gauges whether currencies are over- or undervalued, using the price of a Big Mac as a universal benchmark.

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How Minimum Wage Is Determined

Minimum wage levels vary extensively worldwide, shaped by a complex mix of laws, institutional arrangements, and collective bargaining. They are not randomly assigned values but the outcome of negotiations involving a country's social and political forces, such as trade unions, employers' associations, and governments.

International discourse often emphasizes increasing minimum wages to counter in-work poverty, a sentiment that gained momentum during the COVID-19 crisis as essential workers' low wages came under scrutiny. With each country's approach reflecting its unique economic and labor landscape, the ongoing challenge is to strike a balance between protecting workers and sustaining economic health.

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Changes to Minimum Wage in G20 Countries

Of the G20 countries, Argentina saw the largest increase of the net minimum wage from January 2024 to January 2025, with wages increasing by 51% percent. However, due to high inflation rates, the real purchasing power of the minimum wage has declined.

Another significant outlier over the past year is Saudi Arabia, which saw an increase of 45% in its monthly rate, from SAR 4,000 to SAR 5,800 per month. This increase reflects the government's efforts to enhance the standard of living for Saudi workers and encourage greater participation in the private sector workforce.

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Countries With No Specified Minimum Wage

When it comes to minimum wage, it's not a one-rule-fits-all situation. As of 2025, several countries do not have a statutory national minimum wage. In these nations, wages are typically determined through collective bargaining agreements between employers and labor unions. The following is a comprehensive list of such countries:

• Austria: Relies on sector-specific collective agreements to set wage standards. 
• Denmark: Wages are established through collective bargaining agreements without a national minimum wage. 
• Iceland: Operates without a national minimum wage, with wages negotiated through collective bargaining. 
• Finland: Does not have a national minimum wage; wages are set by collective agreements.
• Norway: Does not have a national minimum wage; wages are set through collective bargaining agreements.
• Italy: Lacks a national minimum wage; wages are determined by sectoral collective agreements.
• Sweden: Wages are determined by collective bargaining agreements without a national minimum wage.
• Switzerland: Lacks a national minimum wage; wages are negotiated through collective agreements, though some cantons have their own minimum wage laws. 
• Singapore: Does not have a national minimum wage; certain industries are governed by the Progressive Wage Model. 
• Liechtenstein: Does not have a national minimum wage; wages are typically set through individual or collective agreements.
• San Marino: Lacks a national minimum wage; wages are determined by collective bargaining agreements. 
• Vatican City: Does not have a national minimum wage; wages are set by internal policies and agreements. 

In these countries, the absence of a statutory minimum wage is often offset by strong labor unions and collective bargaining systems that negotiate fair wages and working conditions for employees across various sectors. 

For example, in countries like Denmark and Sweden, instead of one blanket minimum wage, they have special pay rates for different job sectors. Think of it like a menu of wages tailored to each industry. Even in countries like Germany, which adopted a national minimum wage in 2015, this sector-specific approach was the go-to for ages.

And then there's Uruguay, a standout country where sector-level bargaining sets the pace, even with a national minimum wage in play. These special cases show that when it comes to ensuring fair pay, there's more than one way to achieve the same goal.

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Benchmark Salaries Across The Globe

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Benchmark Salaries

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Minimum Wage for Full-Time Versus Part-Time Employees

Many countries mandate the same minimum hourly wage regardless of whether a worker is full-time or part-time. This ensures a baseline level of fair pay. However, differences can emerge due to the number of hours worked, eligibility for benefits, and additional labor regulations that may apply differently based on employment status and employee age. 

This distinction is significant for both employees and employers as it affects legal compliance, equitable compensation, and scheduling flexibility. While part-time workers generally receive the same minimum hourly rate as full-timers, they might not have access to supplementary benefits such as healthcare, bonuses, or other perks. 

In contrast, a full-time employee typically earns the statutory minimum wage – or more – and are more likely to benefit from a comprehensive compensation package that reflects their extended work hours and additional responsibilities.

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Minimum Wage Variations Across The Globe

In some countries, there's a single minimum wage that covers everyone, no matter the job – pretty straightforward. This is what we call a universal regime. It's like having one rule for all, usually set by the national government.

Now, in the European Union, for example, most countries follow this universal approach with a one-size-fits-all minimum wage. However, in countries like the United States or Canada, things get a bit more local. States or provinces set their own minimums, which can be higher than the federal minimum wage. So, if you're in California or Ontario, the minimum wage might be different than in Texas or Quebec.

And then, there's the sectoral approach. Think of this as custom-tailored wages for specific industries. Maybe you're a barista, a construction worker, or a nurse – your minimum wage is decided by the norms of your particular field.

Whether it's a universal rate that blankets the entire workforce or varied sectoral wages, the idea is to ensure you get a fair shake for a hard day's work, no matter the zip code or job title.

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Ensure Accurate, Timely Wages With Playroll

Staying compliant with ever-changing employment and minimum wages laws can be complex, but it doesn't have to be. Playroll is an EOR service that can help you employ, pay and manage international workers in 180+ countries. Our team of experts ensures on-time payroll for your remote workforce, every time, and ensures compliance with all local labor laws so you can focus on scaling your business.

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