24/7 Wall St. Insights

• Higher minimum wages are directly related to lower rates of poverty, suicide, and unhappiness.
• The benefits of higher minimum wages always outweigh the negative consequences (if any).
• Download our free report on the two stocks we recommend every investor buy.

In 2009, Congress increased the federal minimum wage to $7.25 per hour, but it has not increased it since. Most states pay more than the federal minimum, of course, and the effective minimum wage (the average wage for all minimum-wage workers in the country) was $11.80 in 2019.

If the minimum wage of $7.25 passed in 2009 had been indexed to inflation, it would actually be $10.67 per hour today. So, if you earn less than this per hour, you are actually comparatively earning less per hour than a minimum-wage worker made in 2009. On the other hand, if the minimum wage had increased in equal proportion to productivity, it would be $21.45 today. This means that if you earn less than this today, you are doing more work but being compensated less proportionally than someone in the past. You are being robbed.

More than 72% of Americans support raising the minimum wage. As the cost of living increases, companies raise their prices beyond inflation, and the money we earn buys fewer goods, the need to provide a better standard of living for our citizens grows ever more urgent. The most popular short-term solution includes raising the minimum wage to $15 per hour and tying a regular annual increase to inflation. However, most efforts to increase the minimum wage have been blocked and defeated by right-wing groups and the Republican party, with many supporting removing the minimum wage altogether.

Of course, it is important to remember that federal minimum wages are the floor for wages, not the ceiling nor the average. Provincial, state, or local wages might be set higher. Also, these wages do not include other federally mandated benefits like pensions, vacation days, sick days, health benefits, and more. For example, the United States is the only first-world country to not federally require employers to provide maternity leave, and most employees are required to pay for their own health insurance, which reduces the value of their take-home pay more than other countries.

Economics and studies show that increasing minimum wages reduces suicides, crime, poverty, and income inequality while improving economic growth all with a minimal effect on prices.

But how does our current minimum wage compare to some of the highest in the world? We found the fifteen highest minimum wages for our list.

One of the most common criticisms of raising the minimum wage revolves around the potential increase in the prices of everyday goods. To help measure how this criticism is not only baseless but also runs against established economics, we have included the price of a Big Mac in each country, using the Big Mac Index invented by The Economist.

Compare the price of the Big Mac in each country to the average price of the Big Mac in the United States which is $5.69. Also keep in mind that many of these countries have also indexed their minimum wage to inflation.

#15 Israel

• Minimum wage: $10.00
• Cost of a Big Mac: $4.52

Israel is the most advanced country in the Middle East when comparing economic development and industrialization. It also has the highest average wealth per adult in the region. It has the most billionaires in the region and one of the highest growth rates in the entire world. It also has the second-most number of startup companies in the world and is the top country for the number of start-up companies per capita.

#14 South Korea

• Minimum wage: $10.09
• Cost of a Big Mac: $3.99

South Korea has one of the fastest-growing economies in the world and has the record for the fastest rise in GDP per capita in the world. It has an extremely low unemployment rate and its life expectancy is now one of the longest in the world, increasing sharply along with its economic growth.

#13 San Marino

• Minimum wage: $10.93
• Cost of a Big Mac: $4.07

San Marino is one of the richest countries in the world based on GDP per capita and ranks high on the Human Development Index. It ranks #3 for the number of cars per person. San Marino also has lower taxes than many surrounding countries.

#12 Canada

• Minimum wage: $11.60
• Cost of a Big Mac: $5.52

Canada has one of the highest levels of per-capital immigration in the world and leads the world in refugee resettlement. It ranks extremely and consistently high for levels of quality of life, innovation, education, human rights, government transparency, happiness, and economic competitiveness.

#11 Monaco

• Minimum wage: $11.88
• Cost of a Big Mac: $4.93

Monaco has no personal income tax and very low business taxes. Over 30% of the population of Monaco are millionaires. It has the highest GDP per capita in the world, one of the lowest unemployment rates in the world, and the lowest poverty rate in the world.

#10 The Netherlands

• Minimum wage: $11.98
• Cost of a Big Mac: $5.87

The Netherlands has the 11th-highest income per capita in the world and is 1st in child well-being in the world. It has maintained the top position in the Euro Health Consumer Index for six years based on 48 factors that contribute to citizen healthcare. This includes a great degree of patient freedom in choosing where and how to get their healthcare, almost unmatched elsewhere in the world.

#9 France

• Minimum wage: $13.33
• Cost of a Big Mac: $5.37

French people rank #9 for their purchasing power parity in the world and have had one of the most powerful economies in the world for over 200 years.

According to the World Health Organization, France has one of the “best overall health care” systems in the world and ranked #1 in 1997.

#8 Republic of Ireland

• Minimum wage: $13.96
• Cost of a Big Mac: $6.06

The Republic of Ireland has one of the highest qualities of life in the world, ranking #6 in the Human Development Index. It also ranks consistently high in economic freedom and healthcare. Ireland has been a popular destination for U.S. companies when establishing a headquarters for their European business. It prides itself on being a “low tax” economy.

#7 Belgium

• Minimum wage: $14.58
• Cost of a Big Mac: $6.06

Belgium was one of the leaders of the Industrial Revolution and has maintained its reputation as a modern industrial leader ever since. Belgium has one of the highest life expectancies in the world, which has increased by two months every year since 1960.

#6 Germany

• Minimum wage: $14.68
• Cost of a Big Mac: $6.06

Germany has the largest economy in Europe, the third-largest in the world by nominal GDP, and offers universal healthcare and tuition-free university. It has the fourth-lowest unemployment level in the EU and the second-most popular destination for immigrants in the world.

#5 Argentina

• Minimum wage: $14.89
• Cost of a Big Mac: $6.55

Argentina has the second-highest human development index in all of Latin America and the second-largest economy in South America overall. It is one of the richest countries in the world based on GDP per capita.

#4 Luxembourg

• Minimum wage: $15.43
• Cost of a Big Mac: $6.06

Luxembourg has one of the highest levels of GDP per capita in the world and has regularly had low levels of unemployment. It is the world’s second-richest country, ranks 26th on the Human Development Index, 13th for economic freedom, and 4th for quality of life.

#3 United Kingdom

• Minimum wage: $15.67
• Cost of a Big Mac: $5.90

The United Kingdom maintains one of the most powerful economies in the world, with many of the largest companies being based in the country, one of the largest financial sectors in the world, and many of the most powerful industries including pharmaceutical and automotive. The healthcare system in the U.K. is ranked as the 18th-best in the world, being free at the point of need.

#2 New Zealand

• Minimum wage: $16.42
• Cost of a Big Mac: $4.99

New Zealand was the first country to implement a minimum wage and ranks at the top of human rights and quality of life with one of the lowest levels of corruption in the world. Its economy ranks 13th in the Human Development Index and 4th in the Index of Economic Freedom. New Zealand has the second-lowest tax rate of all developed nations, with its citizens taking home a greater proportion of their wages than most other people in the world besides Mexico.

#1 Australia

• Minimum wage: $18.12
• Cost of a Big Mac: $5.06

Australia has one of the highest incomes per capita in the world and regularly ranks extremely high for health, education, civil liberties, political rights, economic freedom, and quality of life. It has the second-highest amount of wealth per person in the world and the 13th-highest amount of financial assets per capita in the world. Yet it only has an unemployment rate of 3.5% and the national debt only accounts for 45% of its total GDP. It ranks 5th in the Human Development Index.

Australia has the fifth-highest life expectancy in the world, at 83 years. It offers a universal healthcare system which accounted for only 9.9% of its GDP in 2021.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.