Australia Now Has Highest Minimum Wage In The World
Workers on the minimum wage in Australia officially have more purchasing power than those in any other country in the world, according to OECD figures for 2018 released this week.
Business groups have seized on the statistics to contest union claims that the wage system is leaving low-income earners behind, arguing our high minimum wage is having a negative impact on global competitiveness.
A 3.5 per cent increase to our minimum wage in July 2018 saw Australia move ahead of Luxembourg to claim the highest minimum wage in the world, adjusted for inflation and purchasing power.
The latest OECD analysis does not take into account another 3.0 per cent increase in July 2019, outstripping inflation, which indicates we’re likely to stay on top of the rankings for this year.
In Australian dollar terms, our minimum wage increased from $18.93 per hour in 2018, to $19.49 on July 1 this year.
The 2018 OECD data is adjusted for inflation and purchasing power parities (PPPs) to give a figure of $12.14 USD PPP per hour to enable comparisons with other countries.