This map tells us the level of the minimum wage established by law. For comparability, wages are converted to a daily rate and adjusted for the buying power of the local currency using a purchasing power parity (PPP) adjustment.
- No national minimum wage includes cases where there is no minimum wage legislation as well as where legislation provides a framework for establishing a minimum wage, but the country has not yet implemented one.
- To determine purchasing power parity (PPP), economists estimate the amount of money required to purchase the same bundle of goods and services across countries rather than using a simple exchange rate to compare currencies.
- Where a series of minimum wages are set by occupation, sector, region, etc., we used the lowest established minimum wage. In exceptional cases where there was a primary minimum wage with an exception designed for a small percentage, the primary minimum wage was used. For example, in the United States, the federal minimum-wage level does not apply to employees who receive tips. These workers are guaranteed a lower minimum level with the assumption that combined with the tips they receive, their income will be at least equal to the general minimum-wage level.
- Legal minimum wage set by collective bargaining usually means that groups representing entire sectors or professions negotiate with employers to establish a minimum wage that applies to most or all workers. Even if employers in a particular sector do not hold membership in the organization that sets the minimum wage for that sector, they must honor the minimum wages set by collective agreement for a particular sector or profession. 1. Nonunionized workers may or may not be covered.
2. The state may or may not have the right to set a separate minimum for unprotected workers.
- The level of minimum wages established through collective bargaining is generally not shown because it differs per sector, with the exception of three countries. Belgium and Croatia have a collectively bargained national minimum-wage level below which collectively bargained sectoral minimum-wage levels cannot be set. In Greece, we were able to determine the amount of the lowest collectively bargained minimum wage, and that level has been included.