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A new report prepared by Picodi.com about minimum wages around the world has ranked Nigeria first among 54 countries where minimum wages increase on a yearly basis.
The report compared how the minimum wage rates have changed in various countries in 2020 and checked if this money is enough to afford the minimum comfort of living.
The report found that in terms of year-to-year increase in the minimum wage, Nigeria ranked 1st. However, it showed that the minimum wage in Nigeria is still one of the lowest in the world. In Nigeria, the minimum wage is so low that it does not cover the costs of even the most basic shopping basket (121.4 percent of the minimum wage), the report said.
According to the report, the only country that fell behind Nigeria is Uzbekistan with 253.8 percent.
The study included 54 countries where the national minimum wage exists. It turns out that taxation varies significantly from country to country. For example, in the Philippines and Hong Kong, the minimum wage is exempt from the personal income tax. In other places, the difference in gross and net salary could reach even 40 per cent (Romania). For this comparison to be adequate, the researchers took into consideration net pay, which is the money an employee takes home after all deductions
In the report, the latest minimum wages were compared with the minimum wages applicable for 2019. It omitted countries where the minimum wage is negotiated with trade unions and those where there is no nation-wide minimum wage. As for countries where different minimum wage rates apply for various administrative units (Canada, Vietnam, Thailand), it calculated the mean value of all net wages. Net pays were determined with local tax calculators. Product prices come from numbeo.com where the data is gathered by internet users from all over the world.
“In 2020, the highest year to year increase in the minimum wage was noted in Nigeria — 64.8 percent (₦16,200 in 2019 compared to ₦26,697 in 2020 for a full-time employee). However, after converting into dollars, this amount is still one of the lowest ($74). In some countries, like the US, Spain, South Africa or Latvia, the minimum wage remained unchanged. In Kazakhstan, the minimum wage didn’t change, but the actual amount that a worker gets into his pocket decreased, because of higher health insurance.
– Jan. 14, 2020 @ 15:25 GMT |
Tags: New report ranks Nigeria 1st in minimum wages increase Globally
