India’s minimum wage vs US, China and Japan: How much do workers earn in purchasing-power terms?

India ranks 111th among 130 countries for monthly minimum wages on a purchasing-power-adjusted basis, according to data compiled by Visual Capitalist. At $233 a month, India’s wage floor is well below China, Japan and the US, although the comparison reflects differences in local prices and minimum-wage systems.

The Visual Capitalist comparison uses 2024 data from the International Labour Organization (ILO) and expresses monthly minimum wages in purchasing power parity (PPP)-adjusted US dollars. PPP adjustment is intended to make wages more comparable by accounting for what workers can buy in their respective countries.

India ranks below China and other Asian economies

India’s monthly minimum wage is listed at $233, placing it at 111th out of 130 countries in the dataset.

China ranks considerably higher at 73rd, with a PPP-adjusted monthly minimum wage of $544. That means China’s figure is more than twice India’s on this measure.

Other Asian economies also rank above India. Japan is 16th at $1,839 per month, while South Korea ranks 11th at $2,362. Indonesia is at 34th with $993, Malaysia at 30th with $1,035 and Thailand at 46th with $822.

Among India’s South Asian neighbours, Pakistan ranks 68th at $570, Bangladesh 89th at $379 and Nepal 78th at $490. Sri Lanka, however, ranks below India at 120th, with a PPP-adjusted minimum wage of $200.

MUST READ: NITI Aayog calls for overhaul of India’s skilling system, proposes five big reforms for Viksit Bharat 2047

How does India compare with the US?

The US ranks 25th globally, with a monthly minimum wage of $1,257 on the same basis. Its figure is based on the federal minimum wage of $7.25 an hour.

Visual Capitalist notes that the US federal minimum wage has remained unchanged since July 2009. While 30 states and Washington, D.C., have minimum wages above the federal floor, the comparison uses the federal rate.

The US figure is therefore more than five times India’s $233 in the Visual Capitalist dataset.

India vs US, China and Japan: PPP-adjusted monthly minimum wage

Source: Visual Capitalist, based on 2024 International Labour Organization (ILO) data.

Europe dominates the top of the ranking

The highest minimum wage in the dataset is recorded in Switzerland at $3,804 a month, although its wage floors are set regionally rather than through a single nationwide minimum.

Germany, the UK and the Netherlands follow with monthly PPP-adjusted figures of $2,928, $2,902 and $2,876, respectively. Eight of the top 10 countries are European, with Australia and New Zealand also making the list.

ALSO READ: India’s jobs problem: Manufacturing has failed to keep pace with young workforce, says expert

Visual Capitalist cautions that minimum-wage systems differ significantly across countries. Some countries rely heavily on collective bargaining and therefore do not have comparable data, while others use regional or provincial wage floors.

The figures also do not account for taxes or benefits and may mask differences in living costs within individual countries. They are therefore best viewed as a standardised comparison of wage floors, rather than a direct measure of workers’ take-home income or living standards.

MUST READ: India’s white-collar workforce faces a different AI risk: World Bank report