The Picodi South Africa analyst team conducted a comprehensive review of changes in minimum wage across 67 countries. The study also evaluated the price fluctuations of basic groceries and compared the cost of a "survival basket" to the minimum wage. The analysis was based on net wages to account for the significant disparity between gross and net pay, which can reach up to 30% depending on the country.
Of the 67 countries assessed, 58 recorded changes in their minimum wage compared to January 2023. The smallest increases were observed in France (3.4%), Germany (2.8%), and Thailand (2.5%). Conversely, countries like Spain, Malaysia, and Vietnam have either maintained their minimum wage or are yet to determine an increase. Argentina and Türkey recorded the highest increases in minimum wage, at 138% and 100% respectively, largely due to rampant inflation.
Click here for a larger image - Source: Picodi.
The study also compared the cost of a basic grocery basket with the minimum wage in each country. The United Kingdom, Ireland, the Netherlands, Luxembourg, and New Zealand had the most favorable ratios. South Africa lagged behind, with the survival basket accounting for 34.5% of the minimum wage.
Other countries where the cost of basic groceries consumed more than half of the minimum wage include Kazakhstan, India, Vietnam, and Armenia. In Nigeria, the minimum wage does not cover even a basic set of groceries.
Source: www.picodi.com