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In this article, we take a look at 20 countries with the lowest minimum wage in the world. If you need to skip our in-depth analysis, you can skip straight to the five countries with the lowest minimum wage in the world.
The global macroeconomic outlook deteriorated in 2023. According to the International Monetary Fund’s World Economic Outlook, the global expansion rate is expected to decline from 3. 5% in 2022 to 2. 9% in 2024. In addition, trade, investment, and industrial activities globally are facing the negative effects of the largest increase in interest rates since the 1980s through financial governments around the world.
Despite the economic slowdown, global unemployment rates and employment deficits have increased compared to 2022. According to a report by the International Labour Organization (ILO), the global unemployment rate increased from 5. 77% in 2022 to 5. 1% in 2023. The employment hole has narrowed. It now stands at about 435 million in 2023, up from 473 million in 2022. However, despite the improvement in the unemployment rate, real wages declined in 2023 in G20 countries due to the difficulty in keeping up. with high inflation rates and a high cost of living. On Jan. 9, Reuters reported that the U. S. Department of Labor has issued a new order to protect the country’s economy. The U. S. Department of Homeland Security had issued a rule requiring corporations to treat structure personnel as personnel and not as independent contractors. The wage legislation will apply to those contractors, who will have to be treated as company staff under this new rule. You can also read our article on the 20 countries with the highest minimum wage in the world.
According to the Future of Jobs 2023 report, published through the World Economic Forum, generation adoption is expected to be the key driver of business sector transformation over the next five years. It should be noted that more than 85% of companies surveyed by the World Economic Forum cited complex technologies and virtual access as the most important trends for their organization. In addition, in terms of generational adoption, 75% of companies plan to acquire high-end technologies, adding great insights, cloud computing, and synthetic intelligence, by 2027. Alongside those technologies are those that encompass schooling and the workforce. On the other hand, roles such as clerks, secretaries, bank tellers, knowledge access employees, and tellers are expected to decline further during the projected period.
Gender parity in employment opportunities is evident, according to the International Labour Organization report. By 2023, the employment gap for women will be particularly high, at 13. 7% in all countries, compared to 9. 3% for men. In addition, it is vital to bear in mind that the employment deficit is deeper in low- and middle-income countries than in more developed economies. On the positive side, however, employment trends tend to reduce this deficit; According to the World Economic Forum, 79% of companies will prioritize women, 68% will prioritize young people under the age of 25, and 51% will prioritize other people with disabilities as a component of their diversity, equity, and inclusion (DEI) systems in the coming years. years. .
Although most of the countries with the lowest minimum wage are located in the African region and are low- and middle-income countries, their conditions are emerging and improving. Africa’s economy has enormous potential in terms of natural wealth and human capital. . The United Nations’ World Economic Situation and Prospects (WESP) 2024 report forecasts that Africa’s average GDP will grow by as much as 3. 5% in 2024, a slight increase from 3. 3% in 2023. It should be noted that for Nigeria alone, the projected expansion for 2024 is 3. 1%, mainly due to reforms in the oil sector.
On January 9, Bloomberg reported that the International Monetary Fund predicts that African countries will occupy the six most sensible positions in terms of economic expansion in 2024. Yvonne Mhango, Bloomberg’s Africa economist, said:
“Sub-Saharan Africa’s customer expansion is improving; eight of the region’s ten largest economies – which together account for another 40% of regional GDP – will grow strongly to 5% on average.
Some leading corporations in the African economy include Barrick Gold Corporation (NYSE:GOLD), MTN Group Limited (JSE:MTN), and Zenith Bank PLC.
Barrick Gold Corporation (NYSE:GOLD) is Africa’s largest gold producer. It has mines in African countries, as well as the Democratic Republic of Congo, Tanzania and North Mara. On Jan. 21, Barrick Gold Corporation (NYSE:GOLD) announced that its North Mara and Bulyanhulu maintained functionality and had met its 2023 production targets. The mines are part of the Twiga component, a joint venture between the Tanzanian government and Barrick Gold Corporation (NYSE: OR). In addition, Mark Bristow, President and Chief Executive Officer of Barrick Gold Corporation (NYSE:GOLD), said:
“The Twiga partnership has not only transformed Tanzania’s gold mining industry, it has also re-established the country, well-known as one Africa’s most popular tourism attractions, as a prime investment destination that has a wealth of metal and mineral resources.”
On the other hand, MTN Group Limited (JSE: MTN) is Africa’s largest mobile and constant network company. The Company provides various telecommunications facilities, adding Internet facilities, bill payment, device financing and knowledge management. On January 9, MTN Group Limited (JSE: MTN) announced that it had strengthened its partnership with Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) to power mobile financial services and financially empower millions of African citizens. This collaboration is expected to contribute to monetary inclusion for entry-level and high-level business users.
In addition, Zenith Bank PLC is a leading African monetary institution, headquartered in Nigeria and Lagos. Expanding its global presence, the bank has established branches and representative offices in several countries, adding Ghana, the United Arab Emirates, the United Kingdom, China, Sierra Leone and South Africa. On November 24, 2023, Zenith Bank PLC announced that it had signed a Memorandum of Understanding (MoU) with the French government that allowed the bank to open a subsidiary in France as well. In his speech at the signing ceremony, Jim Ovia, founder and chairman of the bank, said:
“I am very excited to welcome you to Nigeria and Zenith Bank. In fact, I am very pleased with the signing of this memorandum with France. For me, it’s an honor to do so on behalf of the bank, and we look forward to doing so. Obtain the permit and start operations in early 2024. “
Now that we’ve looked at some of the key trends in the hard work market, let’s take a look at the 20 countries with the lowest minimum wage in the world.
Photo via Jon Tyson on Unsplash
Our Methodology
We have explained the minimum wage as the wage that can be earned without skills, or even with minimum skills. We consulted insights from the International Labor Organization’s average hourly earnings database to compile our list. We used two filters, adding “total” as a gender tag to get salaries for men and women and “skill point 1~low” to get knowledge about the minimum wage that can be earned with a low or non-existent skill point. We then changed hourly wages from local currencies to USD, starting January 18, for consistency. Once all our knowledge has been sorted, we decide on the countries with the lowest minimum wage and combine our list of the 20 countries with the lowest minimum wage in the world. The list is ordered in descending order of the minimum hourly wage presented in a country. In addition, we use resources by aggregating the websites of the World Bank and the respective country governments to cite GDP consistent with capita, demographics, economic outlook, and minimum wage for each item on our list.
Note: Salaries may vary due to exchange rate fluctuations.
By the way, Insider Monkey is an online investment page that tracks the movements of corporate experts and the hedging budget. Using other consensus approaches, we identified the most productive inventory options among more than 900 hedging budgets that make an investment in U. S. stocks. Top 10 Consensuses Hedge fund stocks outperformed the S index
Minimum hourly wage: $1. 36
Thailand has recently transitioned from a low-income country to a middle-income country. With an annual GDP consistent with a capita expansion of 2. 5%, Thailand has increased its minimum wage from 353 THB to 363. 00 THB. According to World Bank data, the country has made remarkable progress in reducing the poverty rate from 58% in 1990 to 6. 8% in 2020. The minimum hourly wage is THB 48. 09 or $1. 36 for low-skilled or unskilled positions.
Minimum hourly wage: $1. 23
With a population of 2. 53 million and a GDP per capita of $14. 5 billion, Moldova remains one of the poorest countries in Europe. According to the World Bank, Moldova is also among the countries most affected by the Russia-Ukraine war. The salary is $21. 63 or $1. 23. As a result of the revision of the minimum wage in Moldova, the updated minimum monthly wage was increased from 4,000 to 5,000 MDL per month.
Minimum hourly wage: $1. 20
Colombia has a population of 52. 3 million and an annual GDP consistent with a capita expansion rate of 6. 5%. The existing national minimum wage consistent with a monthly minimum wage is COP 1. 3 million without subsidy and COP 1. 46 million consistent with a monthly wage with subsidy. Colombia has a minimum hourly wage of 4686. 6 COP or $1. 20.
Minimum hourly wage: $1. 11
Vietnam has a good luck story: it has gone from being one of the poorest countries in the world to a middle-income economy in just one generation. Staggering growth was recorded between 2002 and 2022, with capital-consistent GDP expanding 3. 6 times over. The average hourly minimum wage in Vietnam is 27,096 VND. or about $1. 11.
Minimum hourly wage: $1. 00
Uzbekistan has a population of 35. 6 million and an economy of $80. 4 billion. In September 2023, the country followed the National Development Strategy which sets progression targets and other reforms in other sectors until 2030. Uzbekistan has a monthly minimum wage of 980,000 UZS. Furthermore, their minimum hourly wage is 12,516 UZS or 1 dollar.
Minimum hourly wage: $0. 95
Turkey is the 19th largest economy in the world, with a population of 85 million and a GDP of $906 billion. The country experienced significant growth between the years 2006 and 2017, therefore pushing the country to achieve an upper-middle-income status. Currently, the minimum wage for Turkey is TRY 17,002. Moreover, the country has a minimum hourly wage of TRY 28.73 or $0.95.
Minimum hourly wage: $0. 88
Before COVID-19 Cambodia was performing well economically, it gained a lower-middle-income country status in 2015. The country is known for its exports and tourism. The economy of Cambodia grew at an annual average rate of 7.7% from the years 1998 to 2019. The minimum wages have been revised for the year 2024; the wages have been increased from $190 to $202 for probation workers and $200 to $204 per month for full-time regular employees. Furthermore, Cambodia has an average minimum hourly wage of KHR 3595 or $0.88.
Minimum Hourly Wage: $0.83
The economic situation in the Lao People’s Democratic Republic has deteriorated over the past three years; In addition, the impact of COVID-19 and structural vulnerabilities have accelerated economic erosion. As a result, the national currency weakens and inflation rises. Laos has a monthly minimum wage of LAK 1. 3 million and an average hourly minimum wage. LAK 17,163 or $0. 83.
Minimum hourly wage: $0. 76
Bhutan is a small landlocked country located between India and China. The geographical landscape of the country is characterized by mountains and valleys. The country is characterized by its precept of Gross National Happiness. In 2021, Buhtan’s annual GDP is consistent with a capita expansion of 3. 8%. It currently has a monthly minimum wage of 3,750 BTN per month and an average hourly minimum wage of 63. 4 BTN or $0. 76.
Minimum Hourly Wage: $0.71
The year 2024 marks the revision of the minimum wage across Indonesia. The monthly minimum wage in Jakarta, Indonesia’s capital, increased from IDR 4. 9 million to IDR 5. 07 million in 2024. The minimum wage increase was announced for 38 other provinces and more than 500 cities and regencies. The average hourly minimum wage in Indonesia is 11,057 IDR or $0. 71.
Minimum hourly wage: $0. 65
Botswana is a country located in southern Africa, bordered by Namibia, South Africa, Zambia, and Zimbabwe. It used to be among the poorest countries in the world, but it has particularly grown to become a middle-class-consistent economy. With a small population of 2. 5 million, its GDP per capita is increasing by 4. 1% annually. However, the country faces serious growth challenges, increasing inequality. Their average hourly minimum wage is BWP 8. 87, or about $0. 65 per hour.
Minimum hourly wage: $0. 53
Zambia is a giant landlocked country in southern Africa. Its population is one of the youngest in the world in terms of average age and is also developing in terms of population growth. The population is expected to double in the next 25 years at the current rate. of growth. Currently, Zambia has a basic monthly minimum wage of ZMW 1,050. The average minimum hourly wage is 13. 9 ZMW or $0. 53.
Minimum hourly wage: $0. 49
The monthly minimum wage for unskilled personnel in India has been higher from INR 17,234 or $207. 04 to INR 17,494 or $210. 17. India is one of the fastest-growing economies in the world and aims to achieve upper-middle-income prestige by 2047. In 2022, annual GDP grew by 6. 5%. However, the challenges, coupled with high levels of inequality and child malnutrition, threaten the economy. India has an average hourly minimum wage of INR 40. 61, which is roughly equivalent to $0. 49.
Minimum Hourly Wage: $0.49
Argentina has a GDP of 650 billion dollars and is one of the largest economies in Latin America. It has vast reserves of herbaceous resources and is a leading agricultural economy. However, severe droughts slowed the expansion rate by 2023, causing a 2. 5% decline in Expansión. Argentina has an average minimum hourly wage of ARS 397. 2, or about $0. 49 per hour.
Minimum hourly wage: $0. 45
Egypt is faced with a poly-crises situation with challenges such as macroeconomic imbalance, stagnant non-oil exports, issues related to Foreign Direct Investment and a general constraint of job creation and availability. Egypt’s minimum average hourly wage is EGP 13.89, which is approximately $0.45 per hour.
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Disclosure: None. 20 countries with the lowest minimum wage in the world originally appeared on Insider Monkey.