What is it about other countries that people often wish to shift bases? A high-wage career boost, better work-life balance, growing per capita income, highest standards of living, more social benefits from the government, or all the above? While getting all of these might sound like a utopia for some, in several countries with the highest minimum average wage, it is a reality.
According to World Data.info, wage is the amount an individual gets from their work as a full-time employee. Hence, freelancers and self-employed people may not have a fixed salary but can have an income from other sources. A person’s income accounts for all the money earned, including the wage, if any. In certain countries, workers’ social security amounts, such as health insurance, pension and health care, are often included in their wages.
Statistics and methods used to determine the highest minimum wage
Since there are no parameters to determine the highest average monthly salary, the International Labour Organization (ILO) uses data to list countries with the highest minimum wage provided to employees.
According to the ILO, providing adequate employment opportunities is one of the basic duties of governments across the globe. “However, having a job is no guarantee of a decent living: job quality is required as well. Working conditions on the job will determine to a great extent our living conditions,” adds the ILO.
Along with this, proper remuneration is required for overall development. “Adequate earnings, ensuring satisfactory living conditions for workers and their families” are the cornerstones for a country’s policymakers. Additionally, it is also essential to keep a tab on growth in wages so that productivity is maintained while the worker also benefits from the job.
These are the top 10 countries with the highest minimum wage
According to their official website, the ILO calculates the highest minimum wage received per month, using the following method to make the list (last updated on 5 December 2022): “Statutory gross monthly minimum wages in US dollars converted using 2017 purchasing power parities (PPP $) and exchange rates (US $), latest year.”
Wondering what is purchasing power parity? The International Monetary Fund defines it as “the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country.” To put things into perspective, the IMF says, “If a hamburger is selling in London for GBP 2 and in New York for USD 4, this would imply a PPP exchange rate of 1 pound to 2 U.S. dollars. This PPP exchange rate may well be different from that prevailing in financial markets (so that the actual dollar cost of a hamburger in London may be either more or less than the USD 4 it sells for in New York).”
With the ILO’s definition in mind, let us look at countries with the highest minimum wage per month.
Switzerland
PPP value: USD 3,415
A serene and picturesque country surrounded by the Alps, Switzerland is known for its rolling landscapes, chocolates, cheese and the highest average salaries. The 21st smallest country in Europe, Switzerland has a mainly tourism-based economy.
However, it is also open to a lot of international workers and with a growing urban population the country, actively recruits in the hospitality sector, lawyers, airline pilots, accountants and veterinarians. It also has a high standard of living. According to reports, a person’s average expenses can go up to CHF 1,452 (over USD 1,605) while an apartment outside the city centre might cost around CHF 1,258 (over USD 1,390) every month.
Türkiye
PPP value: USD 2,680
According to World Data.info, the Republic of Türkiye, formerly known as the Republic of Turkey, provides an average annual wage of around USD 10,590. The country is classified as a developing country by the IMF because of its slower financial growth. However, it is an emerging economy due to rapid industrialisation and new job opportunities.
A Human Development Index (HDI) of 0.838 ranks Türkiye among the most highly developed economies according to the UN definition.
Iceland
PPP value: USD 2,342
A small island nation in the North Atlantic region, Iceland is among the top 10 countries with the highest PPP value. With about three people living per sq km, it is also among the most sparsely populated nations, albeit nearly 94 per cent are urban dwellers.
In 2022, the country also saw a rise in earnings as the monthly Wage Index increased by 4 per cent in December 2022 from November 2022, according to Statistics Iceland report. Reportedly, various industries such as engineering, geophysics and operation managerial jobs offer high amounts.
Besides conducive working conditions and serene landscapes, Iceland also topped the 2022 Global Peace Index and is considered the safest country in the world with the lowest crime rate.
Luxembourg
PPP value: USD 2,305
This tiny nation is in the top order of the list with high salaries and the highest per capita income. Highly skilled professionals like physicians, doctors, data scientists and C-level executives all earn high wages.
Other sectors which contribute to the country’s economy and have seen an influx of international workers include agriculture, banking and international services. Additionally, high standards of living and social security have acted as a catalyst for such high paychecks.
Canada
PPP value: USD 2,281
Canada ranks fifth among the best countries with the highest minimum wage per month. Nearly 82 per cent of its population are urban dwellers and enjoy high standards of living in famous cities such as Toronto, Ottawa and Montréal.
According to reports, working in Canada offers several benefits such as a high-quality healthcare system, work-life balance and several holidays, including parental and maternal leave opportunities. Industries, such as quarrying, scientific and technical services, finance and insurance, can offer lucrative wages.
Germany
PPP value: USD 2,253
One of the largest economies in Europe and in the world, Germany is among the top-tiered countries when it comes to lucrative employment benefits. While the average wage depends on location, profession and work experience, the job market is pretty vast with renowned home-grown companies, such as BMW, Adidas, Bosch and Deutsche Bank.
Reportedly, tax and social benefits add to an individual’s income as product managers, IT managers and medical professionals have the opportunity to earn a handsome wage.
France
PPP value: USD 2,069
France is one of the most prolific economies in Europe and is home to some of the most luxurious fashion brands in the world — Louis Vuitton, Dior, Chanel and Hermès, to name a few. Around 82 per cent of people stay in urban areas with the country’s capital Paris being a major hub.
According to World Data.info, the country has an HDI of 0.903, which ranks it as one of the high developed economies in the world, according to the UN definition, with high standards of living and a great work-life balance.
Belgium
PPP value: USD 2,045
Belgium is famous for its chocolates, beer, high living standards and education facilities. The capital city of Brussels is home to many global organisations and multi-national companies’ offices.
According to the European Cities Monitor 2009, published by the international consultancy and property company Cushman & Wakefield, the city ranks fifth in Europe in terms of providing lucrative environments to set up offices. European or regional offices of companies, like General Electric, IBM, Toyota, Microsoft, Monsanto, Pfizer and Levi Strauss & Co. European, are based in Brussels.
Such corporate houses pave the way for high job opportunities in engineering, scientific instruments, textiles and automotive production segments. An HDI of 0.937 places Belgium among highly developed economies, according to the UN definition.
The Netherlands
PPP value: USD 2,020
According to the European Commission (EC), the Netherlands has a sizable population between 15 and 75 years of age and the employment rate, i.e. the number of people in employment relative to the population in this age bracket, was 73 per cent in 2022. The country allows the youth to take up part-time jobs while the older people tend to work for longer periods as the retirement age was modified to 66 years and seven months in 2022.
The EC report states, “From an international perspective, many employees have a flexible employment relationship, and the Netherlands also has a relatively large number of self-employed persons without employees.”
The health and welfare sector is the largest job sector, offering 1.5 million jobs (17 per cent of the total). It is followed by the retail and manufacturing segments, each accounting for about 10 per cent of jobs. In 2022, economic growth reached 4.5 per cent with high employment as databank and network specialists, electrical engineers, special nurses and machine fitters.
Ireland
PPP value: USD 1,928
Nestled close to the United Kingdom, the Republic of Ireland occupies slightly over 80 per cent of the island of Ireland and a part of the British Isles as well, “but not part of the British ‘Islands’,” says World Data.info.
With an HDI of 0.945, the country is classified as one of the most highly developed economies, according to the UN definition. The job market allows lucrative opportunities and some of the high-paying jobs, reportedly, include software development managers, sales directors and operational managers. According to sources, it also has one of the lowest corporate tax rates in Europe and has ample work-life balance.
(Hero and feature image: Courtesy Towfiqu barbhuiya/ @towfiqu999999/ Unsplash)
Frequently Asked Questions (FAQs)
– Who gets the highest salary in India?
Positions in IT and engineering, healthcare and science sectors, and data science are some of the highest-paying jobs in India.
– Which country pays the highest salary in the world?
According to World Data.info, Monaco offers one of the highest annual incomes in the world — USD 186,080.
– Which country pays the highest salary in Asia?
Countries like Singapore, the United Arab Emirates and Saudi Arabia pay some of the highest minimum wages in Asia.
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Trinetra is an ardent foodie and bibliophile who writes about films, travel, food and lifestyle. As a writer and literature student, slam poetry and storytelling are her go to jam. When not working, Trinetra is busy looking for her next place to visit or binge-watching Instagram videos for travel inspiration.
