Luxembourg is among the world's top three in terms of real wage value

According to a fresh study by Moorepay, Luxembourg's minimum wage remains one of the highest in the world - not only in absolute numbers, but also in terms of purchasing power. The annual salary of €32,445 (converted to INTL$37,198) puts the country in 3rd place in the world. It is second only to the Netherlands and Australia.

The study covers more than 130 countries and the key method of calculation is conversion into international dollars (Intl$) at purchasing power parity (PPP), according to the World Bank's methodology. This allows us to compare the real consumption possibilities, i.e. how many goods and services can be bought with the minimum wage in each country.

Thus, 7 out of 10 countries with the highest real minimum wages are European. Luxembourg, meanwhile, is ahead of all its nearest neighbours. The USA with its federal minimum wage of $7.25 per hour is only in 23rd place (INTL$15,080).

Even with Luxembourg's high standard of living, the data emphasise: the country remains competitive in social policy, providing one of the strongest wage bases in the world. However, the gap with its closest competitors is not large - Australia is ahead of Luxembourg by less than 2 per cent and the Netherlands by just 4.3 per cent.

The study also draws attention to the dire situation in Africa, where a number of countries have no official minimum at all (e.g. Ethiopia, Somalia and South Sudan) and the Gambia has the lowest real minimum wage in the world (INTL$778 per year).