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The global minimum wage can significantly affect the calculation of salaries for employees in different countries, especially for companies operating internationally.
Several key elements within a country influence its minimum wage average, which in turn directly impacts labor market dynamics.
Our interactive minimum wage world map provides an overview of the countries that have updated their minimum wage averages this year, making it a valuable resource for businesses managing international workforces.
2024 global minimum wage world map
Browse our map to discover which countries have recently updated their national minimum wage, according to data from WageIndicator.
What does a minimum wage average include?
Minimum wage averages often include various components, such as base pay, annual bonuses, in-kind benefits, and premiums for overtime work.
In some regions, only base wages are considered when determining minimum wage, while in others, additional wage components may be included. Despite these differences, many countries still lack a clear legal definition of what should be covered by minimum wage requirements.
Overall, minimum wage is calculated on gross pay and it should imply the minimum amount that workers should get to cover their living wages.
For anyone hiring internationally, checking on an updated minimum wage world map is essential to have a starting point when calculating global salaries.
How to manage global payroll efficiently
While international payments can be very straightforward nowadays, paying global employees efficiently means doing so in full compliance with local laws, including guaranteeing that any minimum and average costs are met.
Minimum wage is just one element that can help companies calculate salary offers, but it’s also essential to understand benefit packages and other legal requirements according to different countries.
Specifically, you have to:
- Calculate currency convertions
- Determine employee salaries
- Guarantee timely payments
- Monitor and document processes
- Withhold and pay taxes correctly
- Adhere to local labor regulations
With that in mind, a company may also need to pay employees via a legal entity in the jurisdiction where workers are based. This means you need to either set up your own subsidiary, hire personnel, and administer payroll, or outsource this work to third parties.
Many businesses contract payroll outsourcing and Employer of Record (EOR) services. Working with an EOR allows you to establish a presence in a new market in a matter of weeks, while avoiding company formation and compliance issues associated with being an official employer.
