VITAL SIGNS INDICATOR
Poverty (EQ5)

FULL MEASURE NAME
The share of the population living in households that earn less than 200 percent of the federal poverty limit

LAST UPDATED
January 2023

DESCRIPTION
Poverty refers to the share of the population living in households that earn less than 200 percent of the federal poverty limit, which varies based on the number of individuals in a given household. It reflects the number of individuals who are economically struggling due to low household income levels.

DATA SOURCE
U.S Census Bureau: Decennial Census - http://www.nhgis.org
1980-2000

U.S. Census Bureau: American Community Survey - https://data.census.gov/
2007-2021
Form C17002

CONTACT INFORMATION
vitalsigns.info@mtc.ca.gov

METHODOLOGY NOTES (across all datasets for this indicator)
The U.S. Census Bureau defines a national poverty level (or household income) that varies by household size, number of children in a household, and age of householder. The national poverty level does not vary geographically even though cost of living is different across the United States. For the Bay Area, where cost of living is high and incomes are correspondingly high, an appropriate poverty level is 200% of poverty or twice the national poverty level, consistent with what was used for past equity work at MTC and ABAG. For comparison, however, both the national and 200% poverty levels are presented.

For Vital Signs, the poverty rate is defined as the number of people (including children) living below twice the poverty level divided by the number of people for whom poverty status is determined. The household income definitions for poverty change each year to reflect inflation. The official poverty definition uses money income before taxes and does not include capital gains or non-cash benefits (such as public housing, Medicaid and food stamps).

For the national poverty level definitions by year, see: US Census Bureau Poverty Thresholds - https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html.

For an explanation on how the Census Bureau measures poverty, see: How the Census Bureau Measures Poverty - https://www.census.gov/topics/income-poverty/poverty/guidance/poverty-measures.html.

American Community Survey (ACS) 1-year data is used for larger geographies – Bay counties and most metropolitan area counties – while smaller geographies rely upon 5-year rolling average data due to their smaller sample sizes. Note that 2020 data uses the 5-year estimates because the ACS did not collect 1-year data for 2020.

To be consistent across metropolitan areas, the poverty definition for non-Bay Area metros is twice the national poverty level. Data were not adjusted for varying income and cost of living levels across the metropolitan areas.

VITAL SIGNS INDICATOR
Poverty (EQ5)

FULL MEASURE NAME
The share of the population living in households that earn less than 200 percent of the federal poverty limit

LAST UPDATED
January 2023

DESCRIPTION
Poverty refers to the share of the population living in households that earn less than 200 percent of the federal poverty limit, which varies based on the number of individuals in a given household. It reflects the number of individuals who are economically struggling due to low household income levels.

DATA SOURCE
U.S Census Bureau: Decennial Census - http://www.nhgis.org
1980-2000

U.S. Census Bureau: American Community Survey - https://data.census.gov/
2007-2021
Form C17002

CONTACT INFORMATION
vitalsigns.info@mtc.ca.gov

METHODOLOGY NOTES (across all datasets for this indicator)
The U.S. Census Bureau defines a national poverty level (or household income) that varies by household size, number of children in a household, and age of householder. The national poverty level does not vary geographically even though cost of living is different across the United States. For the Bay Area, where cost of living is high and incomes are correspondingly high, an appropriate poverty level is 200% of poverty or twice the national poverty level, consistent with what was used for past equity work at MTC and ABAG. For comparison, however, both the national and 200% poverty levels are presented.

For Vital Signs, the poverty rate is defined as the number of people (including children) living below twice the poverty level divided by the number of people for whom poverty status is determined. The household income definitions for poverty change each year to reflect inflation. The official poverty definition uses money income before taxes and does not include capital gains or non-cash benefits (such as public housing, Medicaid and food stamps).

For the national poverty level definitions by year, see: US Census Bureau Poverty Thresholds - https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html.

For an explanation on how the Census Bureau measures poverty, see: How the Census Bureau Measures Poverty - https://www.census.gov/topics/income-poverty/poverty/guidance/poverty-measures.html.

American Community Survey (ACS) 1-year data is used for larger geographies – Bay counties and most metropolitan area counties – while smaller geographies rely upon 5-year rolling average data due to their smaller sample sizes. Note that 2020 data uses the 5-year estimates because the ACS did not collect 1-year data for 2020.

To be consistent across metropolitan areas, the poverty definition for non-Bay Area metros is twice the national poverty level. Data were not adjusted for varying income and cost of living levels across the metropolitan areas.

This statistic shows the median household income in the United States from 1990 to 2023 in 2023 U.S. dollars. The median household income was 80,610 U.S. dollars in 2023, an increase from the previous year. Household incomeThe median household income depicts the income of households, including the income of the householder and all other individuals aged 15 years or over living in the household. Income includes wages and salaries, unemployment insurance, disability payments, child support payments received, regular rental receipts, as well as any personal business, investment, or other kinds of income received routinely. The median household income in the United States varies from state to state. In 2020, the median household income was 86,725 U.S. dollars in Massachusetts, while the median household income in Mississippi was approximately 44,966 U.S. dollars at that time. Household income is also used to determine the poverty line in the United States. In 2021, about 11.6 percent of the U.S. population was living in poverty. The child poverty rate, which represents people under the age of 18 living in poverty, has been growing steadily over the first decade since the turn of the century, from 16.2 percent of the children living below the poverty line in year 2000 to 22 percent in 2010. In 2021, it had lowered to 15.3 percent. The state with the widest gap between the rich and the poor was New York, with a Gini coefficient score of 0.51 in 2019. The Gini coefficient is calculated by looking at average income rates. A score of zero would reflect perfect income equality and a score of one indicates a society where one person would have all the money and all other people have nothing.

Between April 2008 and March 2024, households from the Pakistani and Bangladeshi ethnic groups were the most likely to live in low income out of all ethnic groups, before and after housing costs.

The federally mandated minimum wage in the United States is 7.25 U.S. dollars per hour, although the minimum wage varies from state to state. As of January 1, 2025, the District of Columbia had the highest minimum wage in the U.S., at 17.5 U.S. dollars per hour. This was followed by Washington, which had 16.66 U.S. dollars per hour as the state minimum wage. Minimum wage workers Minimum wage jobs are traditionally seen as “starter jobs” in the U.S., or first jobs for teenagers and young adults, and the number of people working minimum wage jobs has decreased from almost four million in 1979 to about 247,000 in 2020. However, the number of workers earning less than minimum wage in 2020 was significantly higher, at about 865,000. Minimum wage jobs Minimum wage jobs are primarily found in food preparation and serving occupations, as well as sales jobs (primarily in retail). Because the minimum wage has not kept up with inflation, nor has it been increased since 2009, it is becoming harder and harder live off of a minimum wage wage job, and for those workers to afford essential things like rent.

Residents in private households between 16 and 75 years of age

Management summary

Decent Wage Bangladesh phase 1

The aims of the project Decent Wage Bangladesh phase 1 aimed to gain insight in actual wages, the cost of living and the collective labour agreements in four low-paid sectors in three regions of Bangladesh, in order to strengthen the power of trade unions. The project received funding from Mondiaal FNV in the Netherlands and seeks to contribute to the to the knowledge and research pathway of Mondiaal’s theory of change related to social dialogue. Between August and November 2020 five studies have been undertaken. In a face-to-face survey on wages and work 1,894 workers have been interviewed. In a survey on the cost-of-living 19,252 prices have been observed. The content of 27 collective agreements have been analysed. Fifth, desk research regarding the four sectors was undertaken. The project was coordinated by WageIndicator Foundation, an NGO operating websites with information about work and wages in 140 countries, a wide network of correspondents and a track record in collecting and analysing data regarding wage patters, cost of living, minimum wages and collective agreements. For this project WageIndicator collaborated with its partner Bangladesh Institute of Development Studies (BIDS) in Dhaka, with a track record in conducting surveys in the country and with whom a long-lasting relationship exists. Relevant information was posted on the WageIndicator Bangladesh website and visual graphics and photos on the project webpage. The results of the Cost-of-Living survey can be seen here.

Ready Made Garment (RMG), Leather and footwear, Construction and Tea gardens and estates are the key sectors in the report. In the Wages and Work Survey interviews have been held with 724 RMG workers in 65 factories, 337 leather and footwear workers in 34 factories, 432 construction workers in several construction sites and 401 workers in 5 tea gardens and 15 tea estates. The Wages and Work Survey 2020 was conducted in the Chattagram, Dhaka and Sylhet Divisions.

Earnings have been measured in great detail. Monthly median wages for a standard working week are BDT 3,092 in tea gardens and estates, BDT 9,857 in Ready made garment, Bangladeshi Taka (BDT) 10,800 in leather and footwear and BDT 11,547 in construction. The females’ median wage is 77% lower than that of the males, reflecting the gender pay gap noticed around the world. The main reason is not that women and men are paid differently for the same work, but that men and women work in gender-segregated parts of the labour market. Women are dominating the low-paid work in the tea gardens and estates. Workers aged 40 and over are substantially lower paid than younger workers, and this can partly be ascribed to the presence of older women in the tea gardens and estates. Workers hired via an intermediary have higher median wages than workers with a permanent contract or without a contract. Seven in ten workers report that they receive an annual bonus. Almost three in ten workers report that they participate in a pension fund and this is remarkably high in the tea estates, thereby partly compensating the low wages in the sector. Participation in an unemployment fund, a disability fund or medical insurance is hardly observed, but entitlement to paid sick leave and access to medical facilites is frequently mentioned. Female workers participate more than males in all funds and facilities. Compared to workers in the other three sectors, workers in tea gardens and estates participate more in all funds apart from paid sick leave. Social security is almost absent in the construction sector. Does the employer provide non-monetary provisions such as food, housing, clothing, or transport? Food is reported by almost two in ten workers, housing is also reported by more than three in ten workers, clothing by hardly any worker and transport by just over one in ten workers. Food and housing are substantially more often reported in the tea gardens and estates than in the other sectors. A third of the workers reports that overtime hours are paid as normal hours plus a premium, a third reports that overtime hours are paid as normal hours and another third reports that these extra hours are not paid. The latter is particularly the case in construction, although construction workers work long contractual hours they hardly have “overtime hours”, making not paying overtime hours not a major problem.

Living Wage calculations aim to indicate a wage level that allows families to lead decent lives. It represents an estimate of the monthly expenses necessary to cover the cost of food, housing, transportation, health, education, water, phone and clothing. The prices of 61 food items, housing and transportation have been collected by means of a Cost-of-Living Survey, resulting in 19,252 prices. In Chattagram the living wage for a typical family is BDT 13,000 for a full-time working adult. In Dhaka the living wage for a typical family is BDT 14,400 for a full-time working adult. In both regions the wages of the lowest paid quarter of the semi-skilled workers are only sufficient for the living wage level of a single adult, the wages of the middle paid quarter are sufficient for a single adult and a standard 2+2 family, and the wages in the highest paid quarter are sufficient for a single adult, a standard 2+2 family, and a typical family. In Sylhet the living wage for a typical family is BDT 16,800 for a full-time working adult. In Sylhet the wages of the semi-skilled workers are not sufficient for the living wage level of a single adult, let alone for a standard 2+2 family or a typical family. However, the reader should take into account that these earnings are primarily based on the wages in the tea gardens and estates, where employers provide non-monetary provisions such as housing and food. Nevertheless, the wages in Sylhet are not sufficient for a living wage.

Employment contracts. Whereas almost all workers in construction have no contract, in the leather industry workers have predominantly a permanent contract, specifically in Chattagram. In RMG the workers in Chattagram mostly have a permanent contract, whereas in Dhaka this is only the case for four in ten workers. RMG workers in Dhaka are in majority hired through a labour intermediary. Workers in the tea gardens and estates in Chattagram in majority have no contract, whereas in Sylhet they have in majority a permanent contract. On average the workers have eleven years of work experience. Almost half of the employees say they have been promoted in their current workplace.

COVID-19 Absenteeism from work was very high in the first months of the pandemic, when the government ordered a general lock down (closure) for all industries. Almost all workers in construction, RMG and leather reported that they were absent from work from late March to late May 2020. Female workers were far less absent than male workers, and this is primarily due to the fact that the tea gardens and estates with their highly female workforce did not close. From 77% in March-May absenteeism tremendously dropped till 5% in June-September. By September the number of absent days had dropped to almost zero in all sectors. Absenteeism was predominantly due to workplace closures, but in some cases due to the unavailability of transport. More than eight all absent workers faced a wage reduction. Wage reduction has been applied equally across the various groups of workers. The workers who faced reduced earnings reported borrowing from family or friends (66% of those who faced wage reduction), receiving food distribution of the government (23%), borrowing from a micro lenders (MFI) (20%), borrowing from other small lenders (14%), receiving rations from the employer (9%) or receiving cash assistance from the government or from non-governmental institutions (both 4%). Male workers have borrowed from family or friends more often than female workers, and so did workers aged 40-49 and couples with more than two children.

COVID-19 Hygiene at the workplace After return to work workers have assessed hygiene at the workplace and the supply of hygiene facilities. Workers are most positive about the safe distance or space in dining seating areas (56% assesses this as a low risk), followed by the independent use of all work equipment, as opposed to shared (46%). They were least positive about a safe distance between work stations and number of washrooms/toilets, and more than two in ten workers assess the number of washrooms/toilets even as a high risk. Handwashing facilities are by a large majority of the workers assessed as adequate with a low risk. In contrast, gloves were certainly not adequately supplied, as more than seven in ten workers state that these are not adequately supplied. This may be due to the fact that use of gloves could affect workers’ productivity, depending on the occupations.

In March 2025, inflation amounted to 2.4 percent, while wages grew by 4.3 percent. The inflation rate has not exceeded the rate of wage growth since January 2023. Inflation in 2022 The high rates of inflation in 2022 meant that the real terms value of American wages took a hit. Many Americans report feelings of concern over the economy and a worsening of their financial situation. The inflation situation in the United States is one that was experienced globally in 2022, mainly due to COVID-19 related supply chain constraints and disruption due to the Russian invasion of Ukraine. The monthly inflation rate for the U.S. reached a 40-year high in June 2022 at 9.1 percent, and annual inflation for 2022 reached eight percent. Without appropriate wage increases, Americans will continue to see a decline in their purchasing power. Wages in the U.S. Despite the level of wage growth reaching 6.7 percent in the summer of 2022, it has not been enough to curb the impact of even higher inflation rates. The federally mandated minimum wage in the United States has not increased since 2009, meaning that individuals working minimum wage jobs have taken a real terms pay cut for the last twelve years. There are discrepancies between states - the minimum wage in California can be as high as 15.50 U.S. dollars per hour, while a business in Oklahoma may be as low as two U.S. dollars per hour. However, even the higher wage rates in states like California and Washington may be lacking - one analysis found that if minimum wage had kept up with productivity, the minimum hourly wage in the U.S. should have been 22.88 dollars per hour in 2021. Additionally, the impact of decreased purchasing power due to inflation will impact different parts of society in different ways with stark contrast in average wages due to both gender and race.

According to a recent study, Colombia had the lowest monthly cost of living in Latin America with 546 U.S. dollars needed for basic living. In contrast, four countries had a cost of living above one thousand dollars, Costa Rica, Chile, Panama and Uruguay. In 2022, the highest minimum wage in the region was recorded by Ecuador with 425 dollars per month.

Can Latin Americans survive on a minimum wage? Even if most countries in Latin America have instated laws to guarantee citizens a basic income, these minimum standards are often not enough to meet household needs. For instance, it was estimated that almost 22 million people in Mexico lacked basic housing services. Salary levels also vary greatly among Latin American economies. In 2022, the average net monthly salary in Brazil was lower than Ecuador's minimum wage.

What can a minimum wage afford in Latin America? Latin American real wages have generally risen in the past decade. However, consumers in this region still struggle to afford non-basic goods, such as tech products. Recent estimates reveal that, in order to buy an iPhone, Brazilian residents would have to work more than two months to be able to pay for it. A gaming console, on the other hand, could easily cost a Latin American worker several minimum wages.

The German Internet Panel (GIP) is an infrastructure project. The GIP serves to collect data about individual attitudes and preferences which are relevant for political and economic decision-making processes.

Experimental variations in the instruments were used. The questionnaire contains numerous randomizations (e.g. order of option A and B) as well as a cross-questionnaire experiment.

Topics: 1. Political attitudes: preferred sole governments or government coalitions; preference for a government coalition of CDU/CSU and FDP or for a coalition of SPD and Bündnis90/Die Grünen; maximum monthly amount the respondent would be willing to pay for the realization of the desired coalition; support for nuclear phase-out; maximum monthly amount the respondent would be willing to pay for the implementation of the desired nuclear phase-out and anticipated maximum amount of other supporters; unemployment benefit ALG II: preference for the current or amended ALG II scheme in terms of standard rates and additional earnings limits; expected impact of the amended ALG II scheme on the proportion of ALG II recipients seeking work; expected impact of the amended ALG II scheme on the financial situation of selected groups (unemployed, low-income and high-income workers respectively enterprises); expected impact of the amended ALG II scheme on the personal financial situation, the likelihood of own unemployment and personal living standards; expected effect of an anticipated general wage cut of three per cent on labour demand; estimated percentage by which labour demand would increase or decrease.

1. Preferences and interests in terms of working life: in relation to current and last occupation: actual weekly working hours including overtime; preferred weekly working hours; monthly net wage (classified); year of last wage payment; preferences for selected options in various decision-making situations regarding weekly working hours, monthly net earnings and income from other sources; self-assessment of risk appetite (scalometer); impact of income tax reform on preferred weekly working hours: preferences for selected options in various decision-making situations (permanent increase or decrease in income tax, partial suspension or one-off increase in income tax).

2. Opinion on the emotional suitability of women for politics; policy competence: complexity of politics and government; opinion on freedom of speech; climate change: knowledge of global changes in average temperatures; general personal confidence; expected persistence of inequality due to benefits for the rich and powerful.

3. Estimate of the likelihood of selected future events occurring in the next 12 months (in percent): job loss, finding a new job, rising cost of living; lowest or highest net monthly wage on a new job (in euros); estimate of the likelihood (in percent) that the monthly wage on a new job is at least sum x.

Demography: sex; citizenship; year of birth (categorised); highest school leaving certificate; highest professional qualification; marital status; household size; employment status; private internet use; federal state.

Additionally coded was: interview date; questionnaire evaluation; assessment of the survey as a whole; unique ID, household ID and person ID within the household.

In 2024, households in California needed an hourly wage of over 47 U.S. dollars to afford the rent of a two-bedroom apartment. Massachusetts had the second-least affordable two-bedroom apartments, as a household would have to earn at least around 45 U.S. dollars per hour in order to afford rent payments. These figures are considerably higher than the average minimum wage in place in many states. There was no state in which a minimum wage worker could afford rent for the average two-bedroom apartment, if they only worked 40 hours a week. Where are the least affordable counties and metros? The least affordable rents were predominately in Californian counties and metropolitan areas in 2024. District of Columbia has one of the highest minimum wages in the country, which stood at 17 U.S. dollars per hour as of January 2024. Thus, the affordability of two-bedroom apartments highlights how disproportionately high housing costs are in the state.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Luxembourg had the highest average monthly salary of employees in the world in 2024 in terms of purchasing power parities (PPP), which takes the average cost of living in a country into account. Belgium followed in second, with the Netherlands in third.

As of September 2024, Mumbai had the highest cost of living among other cities in the country, with an index value of ****. Gurgaon, a satellite city of Delhi and part of the National Capital Region (NCR) followed it with an index value of ****.  What is cost of living? The cost of living varies depending on geographical regions and factors that affect the cost of living in an area include housing, food, utilities, clothing, childcare, and fuel among others. The cost of living is calculated based on different measures such as the consumer price index (CPI), living cost indexes, and wage price index. CPI refers to the change in the value of consumer goods and services. The wage price index, on the other hand, measures the change in labor services prices due to market pressures. Lastly, the living cost indexes calculate the impact of changing costs on different households. The relationship between wages and costs determines affordability and shifts in the cost of living. Mumbai tops the list Mumbai usually tops the list of most expensive cities in India. As the financial and entertainment hub of the country, Mumbai offers wide opportunities and attracts talent from all over the country. It is the second-largest city in India and has one of the most expensive real estates in the world.

As of 2023, Rwanda had the lowest average monthly salary of employees in the world in terms of purchasing power parities (PPP), which takes the average cost of living in a country into account. Gambia had the second lowest average wages, with Ethiopia in third. Of the 20 countries with the lowest average salaries in the world, 17 were located in Africa. On the other hand, Luxembourg had the highest average monthly salaries of employees.

As of 2022, Seychelles was the African country with the highest estimated minimum gross monthly wage, standing at ****** U.S. dollars. It was followed by Morocco at ****** U.S. dollars and South Africa ****** U.S. dollars. Among the selected nations, only **** countries had a minimum wage above *** U.S. dollars on the continent. Minimum wage adjustments Legislations regarding minimum wages vary significantly across countries. The minimum remuneration of employees is usually proportionate to a specific area's cost of living. Determining a minimum wage aims to increase employees' living conditions while reducing poverty and inequality. Due to rising prices and inflation, governments occasionally adjust the minimum salary. In Africa, Sierra Leone experienced the highest increase in the minimum wage in recent years, with a growth of almost ** percent between 2010 and 2019. However, governments can also lower minimum wages. Liberia and Burundi reduced the lowest possible remuneration by around ** percent and ***** percent, respectively, between 2010 and 2019. Widespread informal employment Despite legislation in force, minimum wages are not always guaranteed. In fact, several forms of employment allow employers to avoid paying minimum wages. In addition, undeclared work remains a common practice in many countries worldwide. The situation is particularly critical in some African countries. According to estimates, over ** percent of the working population in Niger, The Democratic Republic of Congo, Benin, and Madagascar engaged in informal employment between 2019 and 2023. In Egypt and South Africa, the share stood at ** percent and ** percent, respectively. Seychelles had the lowest rate on the continent at around ** percent.

In 2025, the minimum hourly wage in Beijing was the highest in China at 26.4 yuan per hour. In the past decade, China has been shifting from a cheap labor driven economy to more matured, service-oriented markets and industries. While the economy continues to grow, prices and wages keep on increasing as well. How do wages differ across the country? China’s provinces and municipalities are divided into districts of different levels. Most provinces set different minimum wages for different districts depending on the cost of living and level of development. Usually, provincial capitals and major cities enjoy higher hourly wages than smaller towns and rural areas of the same province. In 2025, the highest minimum hourly wages in China were to be found in Beijing and Tianjin municipalities with 26.4 and 24.4 yuan respectively, whereas employees in Hainan province who received a minimum wage were paid the least – between 16.3 and 17.9 yuan per hour. Minimum monthly wages that year were the highest in Shanghai and the lowest in Qinghai province. The average annual salary in urban China was around 120,700 yuan in 2023. What are the prospects? Regional governments in China are required to update their minimum wages at least every few years. Hebei, Fujian, and Guangdong – provinces that have not adjusted minimum wages in the past two years – are likely to do so in 2025. Along with economic development, increasing living standards, increasing prices and a shrinking labor force, overall minimum wages will likely continue growing in China.

In 2023, the median hourly earnings of wage and salary workers in the United States was 19.24 U.S. dollars. This is an increase from 1979, when median hourly earnings were at 4.44 U.S. dollars. Hourly Workers The United States national minimum wage is 7.25 U.S. dollars per hour, which has been the minimum wage since 2009. However, each state has the agency to set their state minimum wage. Furthermore, some cities are able to create their minimum wage. Many argue that the minimum wage is too low and should be raised, because it is not considered a living wage. There has been a movement to raise the minimum wage to 15 U.S. dollars per hour, called “Fight for 15” which began in the early 2010s. While there has been no movement at the federal level, some states have moved to increase their minimum wages, with at least three states and the District of Columbia setting minimum wage rates at or above 15 dollars per hour. More recently, some proponents of increasing the minimum wage say that 15 dollars is too low, and lawmakers should strive toward a higher goal, especially given that a 2021 analysis found that the minimum wage in the U.S. should be 22.88 U.S. dollars if it grew at the same rate as economic productivity. Salary Workers On the other hand, salary workers in the United States do not get paid on an hourly basis. The median weekly earnings of salary workers have significantly increased since 1979. Asian salary workers had the highest hourly earnings in the U.S. in 2021. Among female salary workers, those ages 45 to 54 years old had the highest median hourly earnings in 2021, likewise for male salary workers.

Costa Rica is the country with the highest minimum monthly wage in Latin America. According to the minimum salary established by law as of January 2025, workers in the Central American country enjoy a basic monthly wage of over 726 U.S. dollars, an increase of 2.37 percent compared to the previous year. They also earn over 200 U.S. dollars more than the second place, Uruguay. On the other side of the spectrum is Venezuela, where employees are only guaranteed by law a minimum salary of 130 bolívares or little more than 2.50 dollars per month. Can Latin Americans survive on a minimum wage? Even if most countries in Latin America have instated laws to guarantee citizens a basic income, these minimum standards are often not enough to meet household needs. For instance, it was estimated that almost 25 million people in Mexico lacked basic housing services. Salary levels also vary greatly among Latin American economies. In 2020, the average net monthly salary in Mexico was barely higher than Chile's minimum wage in 2021. What can a minimum wage afford in Latin America? Latin American real wages have generally risen in the past decade. However, consumers in this region still struggle to afford non-basic goods, such as tech products. Recent estimates reveal that, in order to buy an iPhone, Brazilian residents would have to work at least two months to be able to pay for it. A gaming console, on the other hand, could easily cost a Latin American worker several minimum wages.

Moldova had the highest net minimum monthly wage in the Commonwealth of Independent States (CIS) as of the beginning of 2024, at 222 euros. The minimum wage in Azerbaijan ranked second, measuring at 173 euros, closely followed by Russia. The lowest figure was recorded in Uzbekistan, where the minimum wage was just enough to cover basic food expenses. Why does the minimum wage get adjusted? The main idea behind the minimum wage is to improve the living standards of workers, particularly those in low-paid occupations. Furthermore, it strives to reduce the gender pay gap, promote workers’ effort, reduce the number of people in welfare programs, and increase consumption. Due to inflation and rising prices, governments occasionally review the minimum salary to maintain the purchasing power of their citizens. For example, Kazakhstan had one of the highest inflation rates in the CIS region in 2023, at around 15 percent. Consecutively, the minimum wage in the country increased by approximately 21 percent in that year. Is everyone guaranteed the minimum wage? Despite labor law protections in place, holding a job in an unregistered enterprise or working a non-declared job in a registered enterprise allows employees to circumvent minimum wage regulations. For instance, in Russia, employment in the informal sector made up less than a fifth of the total in 2022. The share of those working in industries unregulated by the state increased from the previous year due to the coronavirus (COVID-19) pandemic. In April 2021, over a fifth of surveyed Russians admitted to working reduced hours, being furloughed, or becoming unemployed, which made the gray economy sector the only viable option for thousands.