The study covered 64 countries with a government-set minimum wage. The list includes only net amounts, i.e. money that the employee receives in his hand. Countries differ in the degree of tax burden: In a number of countries, earning the lowest national income is exempt from income tax and contributions (Hong Kong, Philippines, Nigeria), while in other countries the difference between gross and net income can be up to several dozen percent (in Poland it is 21.5 percent).
For the purposes of the study, Picodi.com analysts created a contractual food basket and compared its cost with the minimum wage. The basket consists of 8 groups of products: bread, milk, eggs, rice, cheese, meat, fruit and vegetables. The list is very limited, but in the amounts indicated, these products are able to meet the minimum nutrient requirements of the average adult:
Value of the basket of basic food products at the beginning of 2022 it amounts to PLN 343.90. Compared to the beginning of 2021, the price of the product basket has increased by 11.7%.
See also: VAT on food from 5 percent. to zero. Here’s which food this applies to
In Poland, a basket of basic food products is the equivalent of 14.6 percent. minimum wage. A year ago, the corresponding basket of products accounted for 14.9 percent. the then minimum wage. This means that the increase in the lowest domestic price slightly exceeded the increase in prices.
In this ranking, Poland ranked 17th out of 64 countries with a result of 14.6%, ahead of such countries as the Czech Republic (16.2%), Slovakia (16.7%) and Hungary (20.2%). ).
The top countries ranked by Picodi.com are Great Britain, Ireland and Australia: the relation of the basket of basic products to the local minimum wage varies there from 6.6 percent up to 7.3 percent
The situation of those earning the minimum wage in Russia, Kazakhstan or India is not easy: In these countries, a minimum food basket consumes around half of the salary. On the other hand, in Nigeria, the minimum wage is not enough even for a modest basket of products.
Minimum wage. In which countries has it grown the most?
Of the 64 countries included, the minimum wage rates in 10 countries have not changed compared to last year. These are i.a. Israel, the Philippines, Thailand, Vietnam and Peru, and in Slovenia, at the time of writing, the amount was not finally accepted.
See also: Reduced VAT on food. Shops must report that this is due to a government decision
Montenegro can boast the greatest increase in the minimum wage. As a result of, inter alia, favorable tax changes, the minimum wage in this country increased from EUR 222 to EUR 450 per hand (an increase of 103%). Large wage increases were also recorded in Argentina (55%), Turkey (50%) and Kazakhstan (41%).
Poland took 11th place in this ranking: from January 1, 2022, the minimum wage in our country increased by 14.6%. (from PLN 2,062 to PLN 2,364 per hand). For comparison: in the Czech Republic the minimum wage increased by 6.6%, in Great Britain by 5.9%, and in Germany by 3.1%.