24/7 Wall St. Insights
- Minimum wage often sets the bare minimum for pay in a country.
- Minimum wage, including in the United States, is not enough to survive on.
- Download our free report on the two stocks we recommend every investor buy.
Even though the United States is decades behind similar countries in terms of labor protections, worker benefits, economic health of middle and lower classes, and general happiness, all signs show that it will accelerate its backslide into harmful labor practices and employee abuse, there are still countries that have it worse.
America has an abysmally low federal minimum wage, but which countries have the lowest? We compared data from the United Nations and the World Bank.
Background on Minimum Wage
When discussing the minimum wage in any context, especially across countries, it is important to remember a few details.
First, countries treat labor and wages very differently. In most cases, a federal minimum wage is often the bare minimum, or floor, for compensation, and regional or state minimums will probably exceed these amounts.
Second, minimum wages do not include other employee compensation or benefits like insurance, family leave, pensions, and other monetary and non-monetary compensation.
Third, there are many countries with no federally mandated minimum wage, but the reasons why vary between them. Countries like Bahrain, Nauru, Rwanda, Somalia, South Sudan, Tonga, Yemen, Ethiopia, Maldives, Namibia, Cambodia, Cyprus, Micronesia, Grenada, Guinea, Djibouti, Egypt, Brunei, Eritrea, Burundi, and others don’t have federally-mandated minimum wages. Some of them simply do not set one, while others only set a requirement for compensation for government employees or specific industries or sectors.
Fourth, some countries like Denmark, Finland, Norway, Sweden, Iceland, and others don’t have a federal minimum wage but instead require that employers in the country pay their employees a wage determined by labor groups and collective bargaining agreements. In these countries, unions and labor groups have much more power than in the United States. As a result, the employees in these countries not only earn more money, but they take home more of their money at the end of the day and it lasts much longer because healthcare is cheaper (even when including taxes to cover it) family leave is usually provided, and other benefits are included that we don’t get in America.
#15 Mali
- Minimum Wage: $0.25
Mali requires a minimum wage of $57 per month, but Mali also provides social security and healthcare to its citizens.
Mali has suffered military takeovers and dictatorships and political upheaval the last few years, and almost half the population is under 17 years old. As a result, the economy is struggling to grow at any reliable rate.
#14 Zambia
- Minimum Wage: $0.24
Zambia has a handful of different minimum wages depending on different industries and types of workers. For example, for domestic workers, transport, housing, wage increases, and lunch must all be provided for the employee.
#13 Sri Lanka
- Minimum Wage: $0.24
Sri Lanka is a country that is quickly becoming an economic powerhouse in the region, and even though it is struggling to recover from a 2021 financial crisis, its citizens maintain one of the highest purchasing powers in the area.
#12 Uganda
- Minimum Wage: $0.20
Like other countries on this list, Uganda requires a monthly payment amount. In this case, around $34.58 per month. Uganda is still heavily indebted and relies mostly on agriculture for its economy.
#11 Madagascar
- Minimum Wage: $0.18
Madagascar has two different minimum wages: one for agriculture employees, and one for non-agricultural employees. Those who work in agriculture earn just under an extra dollar per month more than others.
#10 Guinea-Bissau
- Minimum Wage: $0.18
In addition to a monthly payment minimum, Guinea-Bissau also requires that employers give each employee a bag of rice each month. More than two-thirds of the country live below the poverty line.
#9 Kyrgyzstan
- Minimum Wage: $0.17
Kyrgyzstan is set to raise its minimum wage in 2025 since its current one is used mostly for administrative purposes and employees typically earn more. It relies heavily on mining operation and the export of uranium, coal, and gold to maintain an economy.
#8 Tajikistan
- Minimum Wage: $0.13
Workers in Tajikistan are also entitled to a number of government subsidies as long as they are employed, and their families can also qualify for these subsidies. Around half the country lives in extreme poverty and is regularly hungry.
#7 Malawi
- Minimum Wage: $0.11
Malawi has a daily payment requirement. The people struggle with high infant mortality rates, HIV/AIDS, and significant ethnic divisions and internal conflict. It is one of the least-developed nations in the world.
#6 The Gambia
- Minimum Wage: $0.10
Gambia also has a daily minimum wage. Most people in Gambia work in fishing, farming, and tourism. China’s recent investment into the country have helped develop its economy.
#5 Tanzania
- Minimum Wage: $0.09
The minimum wage in Tanzania varies pretty wildly depending on which industry and sector you work in. It has managed to survive the Great Recession and other Western financial disasters without any significant effects and communications, banking, and tourism sectors are leading to a stable, growing economy.
#4 Democratic Republic of the Congo
- Minimum Wage: $0.09
The Congo also requires a daily minimum wage. Significant amounts of political instability, conflict, and corruption have prevented the Congo from taking advantage of its vast natural resources and developing a strong economy.
#3 Bangladesh
- Minimum Wage: $0.08
This minimum wage applies to all employees that are not covered by any industry-specific minimum wages. There are many of them, so most employees are paid different wages than this. A new minimum wage is set for the country every five years by a board selected just for hits purpose.
#2 Georgia
- Minimum Wage: $0.04
This comes out to around $8 per month and applies to all private sector employees, though practically it is not relevant as it was established in the 1990s and most employees make more than this today. Public employees are required to be paid $48 per month.
#1 Sudan
- Minimum Wage: <$0.01
Sudan requires its employers to pay employees $0.95 per month, but for civil servants it is set at $6.72 per month. Sudan only became a secular state in 2020 and is one of the least-developed countries in the world, and has one of the poorest populations of all countries. Most of the people live in poverty and work in agriculture.
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.