The National Minimum Wage

THE NATIONAL MINIMUM WAGE comparing rates and types of minimum wages across the world Argentina Australia Austria Belgium Brazil Bulgaria Canada Chile Colombia Croatia Cyprus Czech Republic Denmark Estonia France Germany Greece Hungary India Ireland Italy Japan Latvia Lithuania Luxembourg Mexico Netherlands Norway Panama Poland Portugal Romania Russia Slovakia Slovenia Spain Sweden Ukraine UK USA Printed May 2017 Introduction Most countries have a national minimum wage in some form: in some it is regulated on a monthly basis, but in others a daily or hourly basis. In our survey of 41 countries, a minority do not have a national minimum wage but in most of the countries surveyed in which that was the case, collective bargaining agreements intervened to compensate. For comparative purposes, we show a representative figure for the national minimum wage in a chart. This illustrates just how different the rates across the globe are - and also the complexity of making a meaningful comparison, as the way in which the wage is calculated differs widely in different places. Some have wages for different industries, some for different types of work, some for different regions. But the concept of a minimum wage in itself is widely accepted and legislated for across the globe. Emanuela Nespoli, Partner, Toffoletto De Luca Tamajo e Soci (Italy) Tiffany Downs, Partner, FordHarrison (USA) Disclaimer Nothing stated in this brochure should be treated as an authoritative statement of the law and action should not be taken on the basis of this publication alone. For specific advice on any particular issue, please consult the relevant firm. The law is stated as at March 2017. Denmark Norway Australia Luxembourg Sweden Netherlands Ireland Germany Belgium Italy Austria France UK Canada Japan USA Cyprus Slovenia Spain Portugal Panama Greece Argentina Poland Estonia Croatia Slovakia Hungary Czech Republic Latvia Lithuania Chile Romania Brazil Bulgaria Colombia Russia Mexico India Ukraine 3,500 3108,2410 3107,1815 2083,442 1998,59 197620 1675,75 1628 1556 1531,93 1510 1500 1480,27 1430,7121 1306,265 1209,6513 1174,8423 870 804,96 707,6 649,83 623,4916 575,96 475,711 471,7117 470 440,718 435 411,7811 407,069 380 380 365,756 318,5418 298,413 235,164 232,437 121,1419 115,7514 113,4412 108,8222 Monthly minimum wage in EUR 3,000 2,500 2,000 1,500 1,000 5000 Our approach: All minimum wages quoted include prorata instalments of any additional months’ salary (13th month) and other additional payments, where set by law. In some countries, the basic national minimum wage is not fi xed at a monthly rate but at an hourly or weekly rate. We have converted this into a monthly rate for the chart. We have based this on the statutory full time working hours in the country concerned and assumed the number of working days in the month to be 22. The minimum wage is shown as a gross amount and so no income tax or social security contributions have been deducted. Note that tax and contribution rates can vary considerably from country to country. The minimum wage fi gures we quote do not include any amount payable in addition by employers in social security contributions and so the fi gures do not represent employers’ total payroll costs. In some countries, the minimum wage varies by region, province or state, for example. In those cases, we have tried to choose a representative average, based on national circumstances. In countries that have different minimum wages for different sectors of industry or type of work, we have tried to choose a representative fi gure for the chart. In countries that pay a lower amount for younger people, we have chosen the amount applicable to full-aged workers. If there is a different rate for skilled and unskilled workers or for blue and white collar workers, we have used the unskilled/ blue collar rate. Note that in some countries, national minimum wage is normally supplemented by a collective bargaining agreement. We have refl ected this in the amount shown in the chart. Similarly, if there is no national minimum wage, but collective bargaining agreements normally apply, we have chosen a representative agreement for the amount shown in the chart. All rates are quoted in EUR, with the exchange rate as at 28 March 2017. To bear in mind when reading the table: The cost of living is lower in some countries than others and the minimum wage generally refl ects that. Countries vary in what they consider to be full time work (usually between 35 and 45 hours per week). Some minimum wages are aimed at guaranteeing that full time employees’ earnings do not fall below a certain amount, but in other places the minimum wage is stated as an hourly amount to protect workers without full time jobs. The law is stated as at March 2017. Please see the country text on the following pages for a more detailed explanation of each country’s place in the chart. 1 ARS 8,060 2 AUD 2959.44 3 BRL 1,015 4 BGN 460 5 CAD 1898.40 6 CLP 264,000 7 COP 737,717 8 HRK 3,276 9 CZK 11,000 10 DKK 23,195.88 11 HUF 127,500 12 INR 8,103 13 JPY 144,848 14 MXP 2401.20 15 NOK 28,710 16 USD 677 17 PLN 2,000 18 RON 1,450 19 RUB 7,500 20 SEK 19,000 21 GBP 1,237.50 22 UAH 3,200 23 USD 1,276 6 National Minimum Wage - Ius Laboris National Minimum Wage - Ius Laboris 7 The Committee for the Minimum Wage, which is composed of representatives from the government, employers and employees, sets the national minimum wage rates. Since January 2017, full time employees must not earn less than ARS 8,060 (EUR 475.71) per month and ARS 40.30 (EUR 2.38) per hour. This fi gure has been set by Resolution 2/2016, issued by the Committee for the Minimum Wage. Further, there is a collective bargaining agreement for almost every industry. These agreements set the minimum wage for each job and activity, plus any additional compensation (e.g. for length of service or geographical area) and it cannot be lower than the national minimum wage. Federal legislation provides for an Expert Panel of the Fair Work Commission, which is the national workplace relations tribunal, to set and vary the minimum wages of employees covered by federal legislation, i.e. the vast majority of Australian employees. The minimum wages are reviewed annually and come into operation on 1 July of each year, the start of the Australian fi nancial year. The Panel reviews the minimum wages of employees covered by industry- or occupation-based statutory instruments called Modern Awards and also sets a national minimum wage order for employees not covered by Modern Awards or other agreements (e.g. enterprise agreements). The current national minimum wage, effective since July 2016 is AUD 17.70 per hour (EUR 12.43) or AUD 672.70 per 38-hour week (EUR 471.53). Modern Awards minimum wages vary according to the industry or occupation (there are currently 122 Modern Awards) and are generally higher than the national minimum wage. Casual employees - a special category of employees that generally get no paid sick leave or paid annual leave and have limited rights to guaranteed hours of work and a notice period upon termination – are entitled to a minimum loading of 25% on top of the minimum hourly and weekly fi gures. Special minimum wages have also been set for employees with disabilities, junior employees, apprentices and trainees. Note that in the above chart, we have calculated the monthly minimum wage assuming a fi ve-day week in order to obtain the standard number of hours per day (38 : 5 = 7.6). We therefore multiplied the national minimum hourly rate (AUD 17.70) by 7.6 (number of hours per day) and by 22 days per month. This gives a fi gure of AUD 2,959.44 All employees of 18 years and over are entitled to a guaranteed average gross monthly wage of between EUR 1,531.93 (average fi gure for employees of 18 years and over) and EUR 1,590.64 (employees at least 20 years old with one year of service). These fi gures are based on full time employment and apply in all sectors of industry. Employees under 18 are entitled to a percentage of those amounts. The minimum wage is not set by law in Belgium, but by collective bargaining agreement. A national collective bargaining agreement concluded by the Conseil National du Travail provides the general minimum wage referred to. The wage varies according to the consumer price index. In most cases, sectoral collective bargaining agreements have been negotiated with their own minimum wage which is higher than the minimum amount fi xed by the Conseil National du Travail. Argentina Australia There is no statutory minimum wage in Austria. However, minimum wages are set in collective bargaining agreements. At present, there are more than 850 collective bargaining agreements. For example, in the lowest grade in the 2017 collective bargaining agreement for blue-collar metalworkers, the monthly minimum wage is EUR 1,939.40. The minimum wage for the lowest category of white collar workers in the 2017 collective bargaining agreement for the trade sector is EUR 1,402. Minimum wages can also be set by an executive body for employees, if no collective bargaining agreement applies. Note that the amount given in the above chart refl ects, in our view, a representative fi gure, although some collective bargaining agreements offer a lower amount. Austria Belgium National Minimum Wage - Ius Laboris 7 The minimum wage in Chile is currently CLP 264,000 (EUR 365.75) per month and it applies to employees between 18 and 65. The minimum wage is set annually by law, on the sole initiative of the Chilean President. The current minimum wage came into force on 1 January 2017. The basic wage paid to employees must not be lower than the monthly minimum wage. For employees under 18 and over 65, the minimum wage is currently CLP 197,082 (EUR 272.40). In Colombia, no employee can earn less than the monthly minimum legal wage, which is set at COP 737,717 (EUR 232.43) per month for 2017. This rate applies to regular employees working eight hours a day, and 48 hours a week (distributed over six days). The monthly statutory minimum wage is set annually by the Permanent Negotiation Commission for Labour and Wage Policies, with delegates from the Government, business associations and trade unions. If the Commission does not reach agreement, the wage will be set by the National Government by means of a decree, taking into account factors that may impact on the national economy, such as the Consumer Price Index (CPI), the infl ation target, any increase to gross domestic product, and economic productivity, amongst other variables. There are no gradations to the minimum wage in Colombia and it applies to all labour relationships. The statutory minimum monthly wage for full time working is HRK 3,276 (EUR 440.71) for 2017. The wage is revised every calendar year by the Government, taking into account the economic situation. This year, there is an expectation of economic growth of around 3.2%. The wage is calculated based on the Minimum Wage Act and is publicised each year by a Government Resolution on the minimum wage. There are no gradations to the wage, for example, for different types of job or the age of the employee. Chile Colombia Croatia National Minimum Wage: In detail In Canada, the minimum wage varies between provinces and territories and is subject to periodic increases. As at April 2016, New Brunswick had the lowest minimum wage rate at CAD 10.65 (EUR 7.33) an hour, but it will be increasing to CAD 11 (EUR 7.57) in April 2017. The highest minimum wage is currently found in the Northwest Territories at CAD 12.50 (EUR 8.60) an hour. The minimum wage in Alberta will become the highest in Canada when it is increased to CAD 13.60 (EUR 9.36) in October 2017. In Ontario, the minimum wage is CAD 11.40 (EUR 7.85) per hour. There is no minimum number of hours of work per month or per year. As such, there is no set monthly minimum wage in Canada. Note that in the above chart, the monthly minimum wage is calculated based on an average standard work week of 42 hours and 22 working days per month, and a wage average across the provinces. Canada The minimum wage in Brazil depends on location and professional category. There is a federal minimum wage, which applies by default if there are no specifi c rules in the relevant collective bargaining agreement or in state laws. The federal minimum wage is BRL 937 (EUR 275.47) per month and this rate has been in force since 1 January 2017 (Presidential Decree no. 8948/2016). However, it should be noted that employees have the right to 30 days’ paid holiday and a 13th month bonus. The federal minimum wage is also annually adjusted for infl ation based on government policy. As the trade unions also represent non-unionised workers, most workers are covered by annual CBA providing a minimum wage above the federal rate. In addition, some states have their own minimum wages, which apply to designated professional categories. These vary from one state to another and only apply if there is no applicable CBA for the category. The states that have regional minimum wages are Ceará, Paraná, Rio de Janeiro, Rio Grande do Sul, Santa Catarina and São Paulo. Note that in the above chart, we have taken account of paid holiday and the 13th month bonus although those elements are not paid out each month to employees. The fi gure also does not account for total payroll costs to employers. For example, the payments employers make to the Fundo de Garantia do Tempo de Serviço (FGTS) are not included. Brazil The statutory minimum monthly wage, effective as of 1 January 2017, is BGN 460 (EUR 235.16). The Council of Ministers sets the minimum monthly wage taking into consideration, for example, economic development and infl ation. The amount is usually updated once or twice per year. There is no gradation for different positions or categories of employees. Bulgaria 8 National Minimum Wage - Ius Laboris National Minimum Wage - Ius Laboris 9 The German Parliament and the Federal Council have set national hourly minimum wage for all industries and regions at EUR 8.84. There are some exceptions, for example, for the long-term unemployed or employees under 18. The wage is based on a decision Minimum Wage Commission. The Commission adjusts the rate every two years. Currently, for certain industries, there is a minimum wage that exceeds this amount. Lower minimum wages, regulated in collective agreements, remain in force up to 31 December 2017. Note that although there are minimum wages in specifi c sectors exceeding the hourly rate of EUR 8.84, in our view this is a representative fi gure, as the higher fi gures are the exception and in most sectors a minimum wage of EUR 8.84 applies. The national gross minimum wage since 2012 has been EUR 586.08 per month for employees over 25 and EUR 510.95 for employees under 25, but it is adjusted based on the number of years of experience in the job. There are specifi c minimum wage rates for blue collar employees (i.e. a daily rate of EUR 26.18 for those over 25 and EUR 22.83 for those under 25, adjusted for years of service). The minimum wage used to be set by an Act of the Cabinet but the process has changed and now the Minister of Labour will review the minimum wage, based on consultation with representatives of the social partners, scientists and others. Germany Greece National Minimum Wage - Ius Laboris 9 In Japan, minimum wages for each prefecture are set via the Minimum Wage Law by each prefecture. These vary by prefecture from JPY 714 (EUR 5.95) to JPY 932 (EUR 7.77) per hour. The average minimum wage across the prefectures is JPY 823 (EUR 6.86) per hour. The Minimum Wage Law also forms the basis for minimum wages for each industry that it covers and they vary by industry from JPY 678 (EUR 5.65) to JPY 926 (EUR 7.72) per hour. If the minimum wage for the industry is lower than the minimum wage for the prefecture, the prefecture rate will apply. The rates are reviewed annually. Since 1 January 2017 the national minimum wage is EUR 380 per month for full-time work (i.e. 40 hours a week). The minimum wage per hour is no longer set as a specifi c amount but depends on the normal hours worked during the month. Assuming there are 22 working days in a month the hourly rate would be EUR 2.15. The minimum wage is revised annually by the Cabinet of Ministers of the Republic of Latvia. There is no gradation of the wage depending on the type of job. Due to the fact that teenagers have a shorter daily working time, the minimum hourly rate is higher for them. Japan Latvia French law provides that the minimum wage (called the ‘SMIC’) is EUR 9.76 per hour and EUR 1,480.27 per month based on 35 hours a week, from 1 January 2017. Collective bargaining agreements also set minimum wages, generally based on the type of job and this in turn is based on criteria such as the knowledge, skills and responsibilities involved. They generally provide for higher amounts than the SMIC. The amount of the SMIC is the same whatever the position of the employee and the nature of the employment. France To date there is no national minimum wage in Italy. Employees are entitled to receive a wage commensurate with the quality and quantity of their work and one that is suffi cient to guarantee a decent lifestyle for themselves and their family (Article 36, Italian Constitution). When deciding on minimum levels of pay, the courts often consider the minimum salary set out in the national collective bargaining agreements for the relevant sectors, even if the company does not apply them. Although there is no statutory minimum wage at present, an example of a low wage is the minimum monthly wage provided for the lowest level (blue collar) under the national collective bargaining agreement for the metalworkers’ sector (blue collar, 1st category), which is EUR 1,510, including, in addition to 13 monthly installments, the monthly portion of the severance payment (Trattamento di fi ne rapport, TFR), which is 7.4% of each monthly gross salary. Note that we have chosen this rate for the chart even though it provides one of the lowest rates among the various collective bargaining agreements for the main sectors, because we feel it is representative, given that it covers large numbers of workers. Italy As from 1 January 2017 the minimum monthly wage for full-time work is EUR 470 and the minimum hourly wage EUR 2.78. The minimum wage is agreed between the Estonian Central Employers’ Union and the Estonian Central Employees’ Union, usually on an annual basis, and set by government resolution. There are no gradations to the wage based either on type of work or other factors. Estonia The current national minimum wage is EUR 9.25 per hour as of 1 January 2017. The Irish Government established the Low Pay Commission to advise on the appropriate rate for the national minimum wage on an annual basis. There are some exceptions to those entitled to receive the national minimum wage. For example, some employees such as young people under 18 and trainees are only entitled to a reduced or sub-minimum rate of the national minimum wage. Note that in the above chart, we have based our calculation on a 40-hour week, which tends to be the average working week in Ireland. There is in fact no statutory full time working week. Ireland Generally, salary, like any other benefi t, is not regulated by law and is negotiable by the employer and employees or their representatives by means of individual or collective agreements. However, for certain occupations (shop assistants, clerks, child-care workers (assistant baby and child minders), personal care workers (nursing assistants)) a minimum wage has been set under the Minimum Wage Order of the Ministerial Council and this has applied since 1 April 2012. Currently, the minimum wage for the above occupations is set at EUR 870 (gross monthly pay) for the fi rst six months of employment and thereafter EUR 924 for employees continuing to work at the same employer. The minimum wage for security guards is EUR 4.90 per hour and upon completion of a six-month period of employment at the same employer this is increased to EUR 5.20 per hour. The hourly rate of pay for newly recruited cleaners is EUR 4.55 and upon completing six months of employment at the same employer this increases to EUR 4.84. Note that in the above chart, the rate we have used is the one that applies to shop assistants, clerks etc. For security guards and cleaners a minimum hourly rate applies which amounts to roughly EUR 862,40 and 800,80 respectively. Cyprus Since 1 January 2017, the basic minimum monthly salary has been CZK 11,000 (EUR 407.06) based on full-time weekly working hours (i.e. 40 hours per week); whereas the minimum hourly salary (for a 40-hour full time working week) has been CZK 66 (EUR 2.44). The law also sets minimum wage levels for eight categories of work activity. These are grouped according to complexity, responsibility and diffi culty, with the minimum monthly wage ranging from CZK 11,000 to CZK 22,000 (from EUR407.06 to 814.12) within these categories. The minimum wage is set by Government Decree and has been increased every year since 2012, but there is no legal obligation for it to be revised each year and, for example, it was static between 2007 and 2012. Note that the minimum wage fi gure quoted in the chart is the one given above, but it is very low and in practice employers fi nd it hard to recruit people to work at this rate. It is estimated that approximately 3% of all employees are working for this wage Czech Republic There is no statutory minimum wage in Denmark. However, a minimum wage is often set out in collective agreements. At present, there are several hundred collective agreements in Denmark. For example, the lowest hourly base wage in the collective agreement with the most extensive coverage in Denmark, the Industrial Collective Agreement covering a number of blue-collar workers in the industrial sector, is DKK 115.65 (EUR 15.49) per hour. Based on 37 working hours per week being the normal weekly working hours, the monthly minimum base wage is therefore DKK 18,827.82 (EUR 2,522.92). In addition to this amount, an employee will be entitled to a pension contribution of 8%, holiday pay of 12.5% and a contribution of 2.7% to a so-called ‘free choice account’. Therefore, the total monthly minimum base wage is DKK 23,195.88 (EUR 3,108.24). Denmark The Government sets and revises the minimum wage each year by Government Decree. For 2017, starting from 1 January 2017, the statutory minimum wage for full-time employees (working eight hours a day, 40 hours a week) is the following: For unskilled labour: HUF 127,500 (EUR 411.78) per month; HUF 29,310 (EUR 94.66) per week; HUF 5,870 (EUR 18.95 per day); and HUF 733 (EUR 2.36 per hour). For skilled labour (work that requires at least a secondary school education): HUF 161,000 (EUR 520.03) per month; HUF 37,020 (EUR 119.57) per week; HUF 7,410 (EUR 23.93) per day; and HUF 926 (EUR 2.99) per hour. Hungary The Minimum Wages Act, 1948 provides for the minimum wage and it is set by the Central Government for its employees and each State Government for within that state. The minimum wage is generally revised every year or on a half yearly basis. The rates vary from State to State and also according to the type of work. For unskilled workers the minimum wage varies between INR 7,905 (EUR [ ]) per month in the State of Karnataka and INR 8,301 (EUR [ ]) per month in the State of Maharashtra (including a local cost of living allowance). The salaries of white collar employees are more typically governed by their employment contract and are generally higher than those set by the government. Based on the normal working hours determined by national law, the national minimum monthly wage has been calculated at INR 350 (EUR 4.95) per month. Note that the minimum wage in the State of Delhi is set by the State Government for the National Capital Territory of Delhi. In deciding the minimum wage, the relevant government usually keeps in mind the following aspects (a) basic wages and the cost of living index; (b) consumption based on a family of three; (c) a minimum food requirement of 2,700 calories per average adult; (d) a cloth requirement of 72 yards per annum per family; (e) rent for accommodation (f) fuel, lighting and other miscellaneous items of expenditure; and (g) children’s education, medical requirements, minimum recreation, including festivals and ceremonies and provision for old age and marriage. Note that although there are minimum wages in specifi c sectors that exceed the hourly rate of EUR 8.84, in our view EUR 8.84 is a representative fi gure, as the higher fi gures are an exemption and in the most sectors EUR 8.84 applies. India 10 National Minimum Wage - Ius Laboris National Minimum Wage - Ius Laboris 11 The national minimum wage is fi xed by the National Committee for the Minimum Wage (represented by the trade unions, the employers’ sector and Government) by means of an Executive Decree. If the Committee does not reach an agreement, the rate for the minimum wage is fi xed by the President of the Republic of Panama. The minimum wage is set and revised at least every two years. The minimum wage takes into account the location of employment, the activities and the employee’s occupation. For example, the minimum wage for some key economic sectors, such as fi nancial and insurance services, is USD 2.98 (EUR 2.74) per hour, and for the manufacturing industry it ranges between USD 2.11(EUR 1.94) and USD 2.68 (EUR 2.46) per hour, depending on the branch of industry. There are also two different regional minimum wage levels - Region 1, which includes Panama City and Region 2. Since 1 January 2016, the monthly minimum wage for Region 1 has been USD 677 (EUR 622.96) and for Region 2 USD 529 (EUR 486.79). The minimum monthly wage is based on a Regulation of the Council of Ministers, issued annually, no later than 15 September, under Article 2(5) of the Act of 10 October 2002 on the Minimum Wage for Employment. Since 1 January 2017, the amount of the minimum wage has been PLN 2,000 (EUR 471.71). The minimum wage is generally the same for all employees – there are no gradations. However, in the public sector, the wage is supplemented by additional annual month’s salary (13th month wage), provided by the Act of 12 December 1997 on Additional Annual Remuneration for Employees in the State Budget Sector. In the fourth quarter of 2016, nearly four million people were employed in the public sector, which represents 24% of employees in Poland. Panama Poland National Minimum Wage - Ius Laboris 11 Since 2016, employees have been entitled to receive a minimum wage of EUR 23.59 per day, EUR 707.60 per month and EUR 9,906.40 per year in 14 monthly instalments. The amount of the wage is set each year in regulations issued by the Government. Note that, collective bargaining agreements may specify different wage levels depending on the professional group to which employee belongs to, but these cannot be less than the national minimum wage. There is no national minimum wage in Sweden, but 85 to 90% of employees are bound by a national collective bargaining agreement setting out the minimum rates for different types of work. According to case law, employees are entitled to a reasonable rate of pay, as determined by the applicable national collective bargaining agreement. The collective bargaining agreement for metalworkers in Sweden (Teknikavtalet) sets out minimum wages for metalworkers depending on their level of skill and experience. The lowest monthly base salary for a metalworker is currently SEK 19,000 (EUR 1,976). Spain Sweden There is a unifi ed national minimum wage in Russia, covering all employees. The rate of this is fi xed by federal law, generally once a year, and payment below the set level is prohibited. For 2017, the national minimum wage is RUB 7,500 (EUR 121.14) per month. In July 2017, it is planned to increase the national minimum wage to RUB 7,800 (EUR 125.98) per month. In order to take account of regional differences, a regional minimum wage can be set at a higher rate in a Regional Agreement, but there is no obligation on the regions to do this. For example, for 2017, the regional minimum wage in Moscow is RUB 17,300 (EUR 279.38) per month; in the Moscow region it is RUB 13,750 (EUR 221.96) per month and in Saint Petersburg it is RUB 10,850 (EUR 175.14) per month. Note that in the chart, we have specifi ed the minimum wage at its lowest level, even though in some regions the rates differ, as we are of the view that this fi gure is representative. Russia The statutory gross minimum monthly wage for full time work is EUR 804.96. An employee working part time has a right to a pro-rata payment of the gross minimum monthly wage. The minimum wage is revised once a year (at the end of January) based on the consumer price index using data from the Statistical Offi ce of the Republic of Slovenia. The current minimum wage was set in January 2017. The amount of the gross minimum wage is determined by the Minister of Labour, Family and Social Affairs after prior consultation with the social partners and published on 31 January at the latest. There are no pay gradations with respect to the minimum wage. Slovenia The statutory minimum monthly wage for 2017 is EUR 435 and the minimum hourly wage is EUR 2.50 (based on full-time weekly working hours, i.e. 40 hours per week). The minimum wage is set for each calendar year by a government regulation, effective from 1 January. Jobs in Slovakia are divided into six levels, graded by diffi culty, and the minimum wage for each work level is different (e.g. level 1 – the least diffi cult is at EUR 435 for 2017; level 6 – the most diffi cult is at EUR 870 for 2017). When adjusting the minimum monthly wage, the economic and social situation in Slovakia for the two preceding years is taken into account, in particular, consumer prices, employment, the average monthly wage in Slovakia and the cost of living. The offi cial minimum wage quoted above applies to all regions of Slovakia. Slovakia Currently, the statutory minimum monthly wage is RON 1,450 (EUR 318.54). There are no rules about when the amount should be reviewed. Reviews are usually triggered by economic development, the cost of living and other social factors. Over the last ten years, the minimum wage has increased every year in either one or two tranches. The current minimum wage came into force on 1 February 2017. The wage is set by a decision of the Government following negotiations with the trade unions and employers’ associations. The wage is set at a national level, irrespective of the employee’s age, type of job or sector of activity. Romania The minimum monthly wage and minimum hourly pay are determined by the Government, based on the recommendation of the Tripartite Council, which is made up of representatives of the national trade unions, employers’ organisations and the Government. On 2 December 2015, the Lithuanian Government increased the minimum monthly wage to EUR 380 and the minimum hourly pay to EUR 2.32, with effect from 1 July 2016. There are no rules about when the amount should be reviewed. Reviews are usually triggered by economic development, the cost of living and other social factors. Since 1 January 2017, the statutory minimum monthly wage has been EUR 1,998.59 gross for unskilled employees over 18 and EUR 2,398.30 gross for skilled employees over 18. The minimum wage is set by law and reviewed every two years by the Government. To refl ect changes to the cost of living. From 1 January 2017, the single minimum general daily wage throughout Mexico became MXN 80.04 (EUR 3.91) per day. Federal Labour Law provides that the Minimum Wage National Committee should meet once a year at the end of each year to set the minimum daily wage for the next year. This means that the minimum wage in Mexico changes annually and the new minimum wage enters into force on the fi rst day of each year. Mexican law furthers provides that the minimum wage must be suffi cient to meet the normal basic material, social and cultural needs of a family, and provide for the compulsory educational needs of the children. The minimum wage is not automatically adjusted in line with infl ation as the Committee’s decision is guided by research data, which may include infl ation, exchange rates and the cost of living in different regions of the country. The minimum wage in the Netherlands applies to full-time workers aged 23 and over, excluding holiday allowance of 8%. The government adjusts the amount of the minimum wage twice a year, on 1 January and 1 July. The statutory monthly minimum wage set by law for full time employees of 23 and over from 1 July 2016 is EUR 1,551.60. Note that in the chart, we have adjusted the minimum wage to take account of the statutory holiday allowance of 8%. Lithuania Luxembourg Mexico Netherlands There is no national minimum wage in Norway. However, minimum wages are set in a variety of collective bargaining agreements, for example, in the construction industry, shipbuilding, cleaning services and electronic services. Some of these agreements regarding minimum wages (and other working conditions) are also made unilaterally applicable, which means that they apply to everyone who works in the specifi c sector, regardless of whether they are party to the agreement. The minimum hourly wage for the construction industry is NOK 193.60 (EUR 20.94) for skilled workers, NOK 174 (EUR 18.82) for unskilled workers with no experience of construction work, NOK 181.50 (EUR 19.63) for unskilled workers with at least one year’s experience of construction work, and NOK 116.70 (EUR 12.62) for workers under 18. The working week is 37.5 hours. Note that in the chart, we have included a fi gure based on an unskilled construction worker. Norway Portugal Employees have a right to receive the national minimum wage set in the Portuguese Labour Code and by the Portuguese Constitution. For mainland Portugal, the rate is set by the Portuguese Government (after negotiating with its social partners: employers and unions), at EUR 649.83 per month since 1 January 2017, taking into account of additional payments for services provided, for example, a 13th month payment and other deferred payments provided by law. The rate is higher by 2% in the Autonomous Region of Madeira and by 5% in the Autonomous Region of the Azores, but there are no other gradations to the wage. The minimum wage is payable to all workers. It is expected that the minimum wage will increase to EUR 700 in 2019, as follows: EUR 676.67 in 2018 and EUR 700 in 2019. 12 National Minimum Wage - Ius Laboris National Minimum Wage - Ius Laboris 13 National Minimum Wage - Ius Laboris National Minimum Wage - Ius Laboris The national minimum wage is currently fi xed by the State Budget Law of 2017 at UAH 3,200 (EUR 108.82) per month, and UAH 19.34 (EUR 0.65) per hour. The level of the minimum wage is the same for all categories of employees. However special regulations in different fi elds of economic activity may provide for other wage limits for different categories of employees. These must not be less than the minimum wage. The wage is set yearly by the UK government advised by the Low Pay Commission, an independent body. Different minimum wage rates apply to four different categories of workers, depending on their age. For the period from 1 April 2017 these range from GBP 3.50 (EUR 4.03) to GBP 7.05 (EUR 8.13) per hour. The ‘national living wage’ of GBP 7.50 (EUR 8.65) per hour from 1April 2017 effectively replaces the national minimum wage for those aged over 25. If an employer provides a worker with free accommodation, some of its value can be counted towards the national minimum wage (i.e. an ‘accommodation offset’). For the period from 1 April 2017 the daily limit on the accommodation offset is GBP 6.40 (EUR 7.38). Note that the fi gure in the chart has been calculated based on the average hours worked per week in the UK and a worker aged 25 or over, and therefore earning the highest minimum wage rate. The federal minimum wage is established by the US government and codifi ed in the Fair Labor Standards Act (FLSA). The United States’ Department of Labor’s Wage and Hour Division administers and enforces federal minimum wage law. Many states also have minimum wage rates that are higher than the federal minimum wage rate. If an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two. The federal minimum wage is USD 7.25 (EUR 6.66) per hour, effective since 24 July 2009, for ‘non-exempt’ employees. Non-exempt employees are employees that are covered by the wage payment provisions of the FLSA. Ukraine UK USA 14 National Minimum Wage - Ius Laboris 15 National Minimum Wage - Ius Laboris ARGENTINA Funes de Rioja & Asociados Av. Eduardo Madero 942 C1106ACW Buenos Aires Argentina T +54 11 4348 4100 F +54 11 4348 4115 www.funes.com.ar ITALY Toffoletto De Luca Tamajo e Soci Via Rovello, 12 20121 Milan Italy T +39 02 721 44 1 F +39 02 721 44 500 www.toffolettodeluca.it JAPAN Anderson Mori & Tomotsune Akasaka K-Tower, 2-7, Motoakasaka 1-chome Minato-ku, Tokyo 107-0051 Japan T +81 3 6888 1000 F +81 3 6888 3036 www.amt-law.com/en LATVIA COBALT Latvia Marijas iela 13 k-2, Riga, Latvia 1050 T +371 6720 1800 www.cobalt.legal LITHUANIA COBALT Lithuania Lvovo 25 09320 Vilnius Lithuania T +370 5250 0800 www.cobalt.legal LUXEMBOURG CASTEGNARO 67 rue Ermesinde 1469 Luxembourg T +352 26 86 82 1 F +352 26 86 82 82 www.castegnaro.lu MEXICO Basham, Ringe y Correa S.C. Paseo de los Tamarindos No. 400-A, 9th Floor Bosques de las Lomas 05120 México D.F. Mexico T +52 55 5261 0400 F +52 55 5261 0496 www.basham.com.mx NETHERLANDS Bronsgeest Deur Advocaten De Lairessestraat 137-143 1075 HJ Amsterdam The Netherlands T +31 20 305 33 33 F +31 20 305 33 30 www.bd-advocaten.nl NORWAY Hjort Akersgaten 51 P.O. Box 471 Sentrum 0105 Oslo Norway T +47 22 47 18 00 F +47 22 47 18 18 www.hjort.no PANAMA Arosemena Noriega & Contreras Tower Financial Center, 16th Floor 50th Street and Elvira Mendez P.O. Box 0832-01091 Panama Republic of Panama T +507 366 8400 F +507 366 8457 www.anorco.com RUSSIA ALRUD 6th Floor - 17 Skakovaya Street 125040 Moscow Russia T +7 495 234 96 92 F +7 495 956 37 18 www.alrud.com SWEDEN Elmzell Advokatbyrå AB Gamla Brogatan 32 111 20 Stockholm Sweden T +46 8 21 16 04 F +46 8 21 00 03 www.elmzell.se POLAND Raczkowski Paruch ul. Bonifraterska 17 00-203 Warsaw Poland T +48 22 380 42 50 F +48 22 380 42 51 www.raczkowski.eu SLOVAKIA Nitschneider and Partners Cintorínska 3/A 811 08 Bratislava Slovak Republic T +421 2 2092 1210 www.nitschneider.com/hlavna-stranka UKRAINE Vasil Kisil & Partners 17/52A Bogdana Khmelnytskogo Street Kiev 01030 Ukraine T +38 044 581 7777 F +38 044 581 7770 www.vkp.ua PORTUGAL pbbr Av Liberdade, 110 – 6º 1250-146 Lisbon Portugal T +351 21 326 47 47 F +351 21 326 47 57 www.pbbr.pt SLOVENIA Šelih & Partnerji Komenskega ulica 36, 1000 Ljubljana, Slovenia T +386 1 300 76 50 F +386 1 433 70 98 www.selih.si/en UNITED KINGDOM Lewis Silkin LLP 25 Chancery Lane, Clifford’s Inn, London EC4A 1BL, United Kingdom. T +44 20 7074 8000 F +44 20 7864 1200 www.lewissilkin.com ROMANIA NNDKP 201 Barbu Vacarescu St., Globalworth Tower, 18th Floor, District 2, Bucharest 020 276, Romania T +40 21 201 1200 F +40 21 201 1210 www.nndkp.ro SPAIN Sagardoy Abogados C/Tutor 27 28008 Madrid Spain T +34 91 542 90 40 F +34 91 542 26 57 www.sagardoy.com UNITED STATES OF AMERICA FordHarrison 271 17th Street NW, Suite 1900 Atlanta, Georgia 30363 USA T +1 404 888 3800 F +1 404 888 3863 www.fordharrison.com AUSTRIA Kunz Schima Wallentin Porzellangasse 4 1090 Vienna Austria T +43 1 313 74 0 F +43 1 313 74 80 www.ksw.at BELGIUM Claeys & Engels 280 Boulevard du Souverain 1160 Brussels Belgium T +32 2 761 46 00 F +32 2 761 47 00 www.claeysengels.be BRAZIL Veirano Advogados Av. Presidente Wilson, 231-25th Floor Rio de Janeiro 20030-021 Brazil T +55 21 3824 4747 F +55 21 2262 4147 www.veirano.com.br BULGARIA Boyanov & Co 82, Patriarch Evtimii Blvd. Sofia, 1463 Bulgaria T +359 2 805 50 55 F +359 2 805 50 00 www.boyanov.com CANADA Mathews Dinsdale RBC Centre, Suite 3600 155 Wellington Street West Toronto, ON M5V 3H1 - Canada T +1416 862 8280 F +1416 862 8247 www.mathewsdinsdale.com CHILE Munita & Olavarría Apoquindo 3.721 piso 21 7550177 Las Condes Chile T +56 2 2 3078050 D +56 2 2 3078051 www.munitaabogados.cl COLOMBIA Brigard & Urrutia Abogados Calle 70A No. 4-41 Bogotá Colombia T +571 346 20 11 F +571 310 06 09 www.bu.com.co CROATIA Divjak, Topic & Bahtijarevic EUROTOWER Ivana Lucica 2A / 18th Floor 10000 Zagreb Croatia T +385 1 5391 600 www.dtb.hr CYPRUS George Z. Georgiou & Associates LLC 1st Floor, 1 Eras Street 1060 Nicosia Cyprus T +357 22 763340 F +357 22 763343 www.gzg.com.cy CZECH REPUBLIC Randl Partners Tetris Office Building Budeovicka 1550/15a 140 00, Prague 4 T +420 222 755 311 F +420 270 007 311 www.randls.com DENMARK Norrbom Vinding Amerikakaj Dampfaergevej 26 2100 Copenhagen Denmark T +45 35 25 39 40 F +45 35 25 39 50 www.norrbomvinding.com GREECE Kremalis Law Firm 35 Kyrillou Loukareos street 114 75 Athens Greece T +30 210 64 31 387 F +30 210 64 60 313 www.kremalis.gr ESTONIA COBALT Estonia Kawe Plaza, Pärnu mnt 15, 10141 Tallinn Estonia T +372 665 1888 F +372 665 1899 www.cobalt.legal HUNGARY CLV Partners Tartsay Vilmos u. 3. 1126 Budapest Hungary T +36 1 488 7008 F +36 1 488 7009 www.clvpartners.com INDIA Kochhar & Co. 11th Floor, Tower A, DLF Towers Jasola Jasola District Center 110025 New Delhi India T +91 11 4111 5222 / 43129300 F +91 11 4056 3813 www.kochhar.com IRELAND LK Shields Solicitors 40 Upper Mount Street Dublin 2 Ireland T +353 1 661 0866 F +353 1 661 0883 www.lkshields.ie FRANCE Capstan Avocats 83 rue La Boétie 75008 Paris France T +33 1 44 95 48 00 F +33 1 45 63 99 62 www.capstan.fr GERMANY Kliemt & Vollstädt Speditionstrasse 21 40221 Düsseldorf Germany T +49 211 88288 0 F +49 211 88288 200 www.kliemt.de Global reach AUSTRALIA University of Melbourne Maria Azzurra Tranfaglia www.iuslaboris.com www.globalhrlaw.com 280 Boulevard du Souverain 1160 Brussels-Belgium [email protected] + 32 2 761 4610 53 165