June 22, 2022

To help multinational employers address the different minimum wage rates around the world, this roundup provides some information and links to resources from organizations, government websites, third-party resources and news articles.

Global or multicountry

 

 

Americas

 

  • Argentina: As of 1 Feb 2022, the minimum monthly wage rate is ARS 33,000, according to the Ministry of Labor, Employment and Social Security’s release (Spanish). The Ministry of Labor, Employment and Social Security has announced (Spanish) two minimum wage increases, slated for June and August 2022. On 1 June, the daily minimum wage increased to ARS 45,540, and the hourly wage increased to ARS 227.70. On 1 August, the daily rate will increase to ARS 47,850 and the hourly rate will be ARS 239.30. These increases replace increased minimum wage rates announced in Resolution 11/2021.

  • Bolivia: Bolivia’s monthly minimum wage increased to BOB$2,250 — up from BOB$2,164 — retroactive to 1 Jan 2022 under Supreme Decree No. 4711 (Spanish) published on 1 May 2022.

  • Brazil: On 14 April 2022, the government submitted proposals (Portuguese) to parliament to increase the monthly minimum wage to BRL 1,294 per month, up from BRL 1,212.

  • Canada: On 1 April 2022, the federal minimum wage increased to C$15.55 — up from C$15.00 per hour. This change applies to workers and interns in federally regulated private sectors, including banks, postal and courier services, and interprovincial air, rail, road, and marine transportation. For those working in provinces or territories where the general minimum wage rate is higher, the higher rate will continue to apply. The federal minimum wage is adjusted automatically each 1 April, based on the average annual increase of the consumer price index.

  • Canada — British Colombia: The general minimum wage in British Columbia, Canada increased by 2.8% on 1 June 2022 to C$15.65 per hour, up from C$15.20. The increase is the first tied to British Columbia’s average annual inflation rate. Effective 1 January 2023, the minimum piece rates for certain agricultural roles will also increase by 2.8%.

  • Canada — Ontario: Ontario’s government has announced that it will increase the minimum wage to C$15.50/hour, up from C$15.00/hour, beginning 1 October 2022. This will be an 8% increase over one year.

  • Canada — Prince Edward Island: Prince Edward Island’s minimum wage increased by 70 cents to CA$13.70 per hour on 1 April 2022.

  • Canada — Saskatchewan: On 1 October 2022, the minimum wage will increase to CAD$13 per hour, up from CAD$11.81. Future increases are slated on 1 October 2023 to CAD$14, and on 1 October 2024 to CAD$15.

  • Canada — Yukon:  The minimum wage in Yukon increased by 3.3% on 1 April 2022 to C$15.70, up from C$15.20. The Fair Wage paid to people working on government-tendered construction contracts also increased by 3.3% on 1 April 2022 across all four wage categories.

  • Chile: In July 2021, Chile’s monthly minimum wage increased retroactively to 1 May 2021 to CLP 337,000 — up from CLP 326,500 — for employees aged 18 to 65 years under Law 21360 (Spanish). For employees aged younger than 18 and older than 65, the monthly minimum wage is CLP 251,394. From 1 Jan 2022, the minimum monthly wage for workers aged 18 to 65 years increased to CLP 345,000, or to CLP 350,000 if the monthly economic activity index (IMSCEC) increased by three or more percentage points as of May 2021. Under the law, the president must submit a bill to adjust the minimum monthly wage, effective no later than 1 May 2022.

  • Colombia: Effective 1 Jan 2022, Colombia’s monthly legal minimum wage (Spanish) is COP$1,000,000 — a 10.07% increase on the 2021 wage. In addition, the monthly integral salary increased to COP$13,000,000. This comprises salary, the value of fringe benefits such as social security, surcharges and other payments for night work, Sunday working, public holiday working, and legal benefits including bonus payments (for example, “primes legalese”). The monthly transportation assistance payment is COP$117,172 and is paid to certain workers earning up to two times the monthly minimum wage (base salary of COP$2,000,000).

  • Dominican Republic: From 1 Jan 2022, the monthly minimum wage rates (Spanish) in the Dominican Republic increased to DOP$21,000 for large private sector employers, DOP$19,250 for medium-sized employers, DOP$12,900 for small employers, and DOP$11,900 for microenterprises. In addition, the minimum wage amount used to calculate certain insurance contributions (workers’ compensation, health, and retirement pension) increased (Spanish) to DOP$16,262.50.

  • Ecuador: From 1 Jan 2022, the basic minimum monthly salary (Spanish) is US$425 — up 6.25% from the 2021 rate. The increase also applies to sectoral wage rates.

  • Guatemala: Guatemala announced (Spanish) the minimum wage rates, effective 1 January 2022. Different minimum wage rates and premiums apply, depending on industry sector and working conditions applicable to certain job types. In addition to the minimum monthly wage, workers must be paid the “incentive bonus” (GTQ 250). The new monthly minimum wage rates, including the incentive bonus, are GTQ 3,209.24 for nonagricultural workers, GTQ 3,122.55 for agricultural workers, and GTQ 2,954.35 for workers in export industries.

  • Honduras: On 3 April 2022, Honduras’s Tripartite Table announced (Spanish) minimum wage increases between 5.32% and 8% for years 2022 and 2023, depending on the workforce size. The increases apply retrospectively, payable for the first three months of 2022. The increase is 7.5% in 2022 and 8% in 2023 for employers with more than 150 employees. For smaller employers, the increase is the same for both 2022 and 2023 — 6.5% (51 to 150 employees), 5.5% (11 to 50 employees), and 5.32% (1 to 10 employees). Workers in the textile sector and Free Zone companies are excluded from this agreement, and are subject to other measures.

  • Jamaica: Jamaica announced a significant increase to its 40-hour weekly minimum wage to JMD $9,000, up from JMD $7,000, effective 1 April 2022.

  • Mexico: From 1 Jan 2022, Mexico’s daily minimum wage increased (Spanish) by 22% to MXV$172.87 up from MXV$141.70, and to MXV$260.34 — up from MXV$213.39 in the Free Economic Zone of the Northern Border. The increased amount includes the Independent Recovery Amount (MXV$25.45 in the Free Economic Zone, and MXV$16.90 in the rest of the country). The National Wage Commission (CONSAMI) announced the increases on 1 Dec 2021. Also, from 1 Feb 2022, revised rates for Mexico’s UMA — Unidad de Medida de Actualizaciόn — took effect (Spanish and English). The new UMA rates are MXN$96.22 (daily), MXN $2,925.09 (monthly), and MXN$35,101.08 (annually). The UMA is used as an economic reference for calculating payments, obligations and penalties owed to the government, including social security benefits.

  • Peru: The minimum living wage for private sector workers in Peru increased on 1 May 2022 to PEN 1,025, up from PEN 930. The increase is expected to impact around 30% of the workforce. The measure was published in Supreme Decree No. 003-2022-TR (Spanish) on 3 April 2022.

  • Puerto Rico: Effective 1 Jan 2022, the hourly minimum wage in Puerto Rico increased (Spanish) to $8.50, up from $7.25. Further increases are slated to take effect on 1 Jul 2023 ($9.50), and on 1 Jul 2024 ($10.50). The 2024 increase will require approval of the Department of Labor and Human Resource’s newly created Minimum Wage Evaluation Committee. The minimum wage was last increased in 2009.

  • United States: Roundup — US employer resources on minimum wage increases (Mercer, regularly updated)

 

Asia Pacific

 

  • Australia: Australia’s Fair Work Commission has published its annual wage review and, from 1 July 2022, increased rates for the national minimum wage (NMW) and most modern award minimum wage rates will take effect. The NMW will increase by 5.2% to AU$812.60 per week (up from AU$772.60) and AU$21.38 per hour (up from AU$20.33). The modern award minimum wage rate will increase by 4.6%, subject to a minimum increase of AU$40 per week; this means that wage rates above the current rate of AU$869.60 will increase by 4.6%, and wage rates below that amount will increase by AU$40 per week. Modern award rates in the aviation, tourism and hospitality sectors will take effect on 1 October 2022.

  • Malaysia: The national minimum wage increased on 1 May 2022 to RM 1,500 per month. However, implementation of the new rate could be delayed for smaller employers, according to the prime minister’s 19 March 2022 announcement. The human resources minister confirmed that the mechanism for implementing the increased wage would be announced soon. Currently, Malaysia has a two–tier minimum wage structure, with a higher rate (RM 1,200) paid for jobs located in city council or minimum council areas, and a lower rate (RM1,100) paid for jobs in other locations.

  • Philippines: The minimum wage rates in two Philippine regions increased effective 4 June 2022. In the National Capital region, the increased daily minimum wage for nonagricultural workers increased to PHP 570 (up from PHP 537), and for agricultural workers the new rate is PHP 533 (up from PHP 500). In the Western Visayas region, the increased daily minimum wage rate for nonagricultural workers is PHP 450 for employers with more than 10 employees, and PHP 420 for smaller employers. The increased wage rate for agricultural workers increased to PHP 410, (up from PHP 315). These increased rates — the first since 2018 and 2019 respectively — are estimated to benefit approximately 214,836 private sector employees.

  • South Korea: The Minimum Wage Commission increased the minimum wage 5.1% to KRW 9,160 per hour for 2022, much higher than the 1.5% increase in 2021. The monthly wage is approximately KRW 1,914,440 per month.

  • Taiwan: For 2022, Taiwan’s monthly minimum wage increased to NT$25,000 (up from NT$24,000), and the hourly minimum wage is now NT$168 (up from NT$160).

  • Vietnam: Regulations on regional minimum wages in Vietnam (Associates of Successful Lawyers, 13 Jan 2021)

 

Europe, Middle East and Africa

 

  • European Union: The European Union has reached provisional political agreement on the proposed directive on adequate minimum wages — formal votes in the Council of Ministers and European Parliament are still required, and then member states have two years to transpose the directive into national laws. Under the directive, member states must: Have procedural frameworks for setting minimum wages that meet certain criteria; update their minimum wages at least every two years (or four years if using automatic indexation); involve the social partners in setting and updating minimum wages; and establish a timeline and measures to strengthen collective bargaining in member states that have less than an 80% coverage rate. The European Commission issued the proposed directive in October 2020.

  • Angola: Angola's national minimum wage rates increased (Portuguese) on 17 February 2022 to AOA 48,271.73 for the general trade and mining industry; to AOA 40,226.44 for the transportation, services and transforming industries; and to AOA 32,181.15 for agriculture and economic activities not included in the other categories.

  • Belgium: The average monthly guaranteed minimum wage increased (French) on 1 April 2022 to €1,806.16 (€10.98 per hour), up from €1,625.72. The age and service conditions no longer apply, and only one minimum wage rate is payable to workers from age 18.

  • Bosnia-Herzegovina: The monthly minimum wage in Bosnia-Herzegovina rate increased (Bosnian) on 1 May 2022 to BAM 650, up from BAM 590.

  • Czech Republic: The government increased (Czech) the minimum monthly wage to CZK 16,200 — up from CZK 15,200 — effective 1 Jan 2022.

  • Egypt: The monthly minimum wage was established for the first time in 2021 for Egypt’s private sector employees — it became EGP 2,400 from 1 Jan 2022. The National Wages Council also approved the payment of a periodic bonus to private sector employees, calculated on 3% of the insurance contribution wage for the fiscal year 2021/2022. The minimum bonus payment is EGP 60 — but implementation details have not been published. The measures include “flexible mechanisms” aimed at encouraging employers’ compliance.

  • France: The monthly minimum wage (“SMIC”) increased (French) on 1 Jan 2022 to €1,603.12, up from €1,589.47, and the new hourly wage is €10.56.

  • Germany: As of 1 January 2022, the statutory hourly minimum wage increased to €9.82; it will increase in July to €10.45, and is proposed to increase to €12 on 1 October 2022.

  • Greece: On 1 May 2022, the monthly minimum wage increased by €50 to €713 gross — the last increase took effect on 1 January 2022. The increase is estimated to benefit approximately 650,000 employees.

  • Hungary: The government increased (Hungarian) the monthly minimum wage by 20% as of 1 Jan 2022 to HUF 200,000 — up from HUF 167,000. The guaranteed minimum wage increased to HUF 260,000 — up from HUF 219,000.

  • Jersey/Channel Islands: Jersey increased minimum wage rates, effective 1 Jan 2022. The minimum wage increased to £9.22 (up from £8.32), and the first and second year rate for trainees following approved training increased to £6.91 (up from £6.24) and £8.07 (up from £7.28) respectively. The amounts that can be offset for employer-provided staff accommodation and meals are unchanged.

  • Kazakhstan: Kazakhstan increased (Kazakh) its monthly minimum wage rate to KZT 60,000 (up from KZT 42,500), effective 1 January 2022.

  • Kenya: Kenya’s president announced a 12% minimum wage increase on 1 May 2022, effective immediately. The wage amounts vary by job type and region.

  • Mauritius: On 29 January 2022, Mauritius published increased minimum wage rates effective from 1 January 2022. The new monthly minimum wage is MUR 10,575 (up from MUR 10,075) for nonexport enterprise employees, and MUR 9,875 (up from MUR 9,375) for export enterprise employees.

  • Moldova: The minimum wage in Moldova increased (Romanian) on 1 April 2022 to MDL 3,500 per month (up from MDL 2,935) calculated on an average 169 hours per month, and to MDL 20.71 per hour.

  • Poland: Poland’s Council of Ministers approved (Polish) minimum wage rates for 2022 that increased the monthly rate to PLN 3,000 (up from PLN 2,800), and the hourly rate to PLN 19.60 (up from PLN 18.30).

  • Portugal: Portugal’s monthly minimum wage increased (Portuguese) on 1 Jan 2022 to €705. Certain employers could be entitled to an exceptional compensation payment for each full-time employee paid equal to or higher than €655 but less than €705 per month as of December 2021. The measure aims to compensate employers for the minimum wage increase, and employers must register to receive it by 1 Mar 2022.

  • Qatar: Qatar implemented a minimum monthly wage of QAR 1,000 — applicable to all workers across all industry sectors, effective 20 March 2021. The minimum wage is the first of its kind in the Middle East, according to the government. Employers must also pay minimum allowances for food and housing — QAR 300 and QAR 500 respectively — if these are not already provided directly to workers. An estimated 400,000 private sector workers (or 20% of the private sector) benefit from the minimum wage.

  • Romania: From 1 June 2022, employers are requested to voluntarily increase the monthly minimum wage by RON 200 per month (to RON 2,750) as part of measures aimed at alleviating the effects of inflation and increased prices on workers. Announced (Romanian) by the Ministry of Finance on 4 May 2022, the voluntary increase is exempt from social contributions and tax. From 1 January 2022, the gross minimum monthly basic wage in Romania increased (Romanian) to RON 2,550, up from RON 2,300. The different salary amounts payable to employees with higher-education qualifications were removed. Employees can only be paid the minimum gross base salary for a maximum of 24 months, after which they must be paid a higher salary. The 24-month period started on 1 January 2022, regardless of when the employee’s minimum wage payment commenced.

  • Russia: On 1 Jan 2022, the monthly minimum wage increased (Russian) to RUB 13,890 (up from RUB 12,792) under measures included in Federal Law No. 406-FZ of 6 Dec 2021.

  • South Africa: The minimum hourly wage for regular employees, farm workers and domestic workers increased on 1 March 2022 to R23.19 per hour (up from R21.69); to R19.09 for domestic workers; and to R12.75 (up from R11.93) for workers employed on expanded public works programs. A recently published government report on the impact of the minimum wage’s introduction in 2018 concluded it has had “no major negative impact on employment.”

  • Spain: From 1 Jan 2022, Spain’s minimum wage rate is €33.33 per day, or €1,000 per month, paid over 14 installments. The minimum wage for temporary employees and seasonal workers working for the same company for fewer than 120 days cannot be less than €47.436 per day, and must be paid at the legal rate for the relevant industry sector. The rates feature in Royal Decree 152/2022 of 22 Feb 2022 (Spanish).
  • Turkey: The Turkish government increased (Turkish) monthly minimum wage rate, effective 1 Jan 2022, to TRY 4,250. Different net minimum wages apply to individuals with a spouse or children. The increase is around 50% from 2021 and is the largest increase in the last 50 years.

  • United Kingdom: From 1 Apr 2022, the United Kingdom’s (UK’s) National Living Wage for individuals aged 23 or older will increase to £9.50 per hour — a 6.6% increase from the 2021 rate. The National Minimum Wage (NMW) — which is paid to individuals and apprentices of at least school age — also will increase from April 2022. The new NMW rates will be £9.18 for individuals aged 21 to 22; £6.83 for those aged 18 to 20; £4.81 for those aged 16 to 17; and apprentices. The permitted offset for accommodation will be £8.70.
Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group


Speak with a Mercer consultant

Provide your contact information to get in touch
*Required Fields