Speeches

Lord Forsyth of Drumlean – 2015 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Lord Forsyth of Drumlean on 2015-11-11.

To ask Her Majesty’s Government what is the minimum wage in sterling in each EU member state.

Baroness Neville-Rolfe

In the Low Pay Commission’s National Minimum Wage Report 2015, Appendix 3 outlines details of 2014 adult minimum wage rates in 12 comparator countries, including EU member states. Minimum wages vary in level and structure between countries given the context of their economic and labour market conditions. These comparisons are broken down in the table below.

Comparison of Adult Minimum Wage, by Country, End 2014

In national currency expressed as hourly ratea In UK £, using: Date of last uprating % increase in national currency from 2012/2013 to 2014 Age full minimum wage usually appliesb
Exchange rates PPPs
Australiac AUS$16.87 9.37 8.44 Jul-14 3.0 21
Belgium € 8.67 6.88 7.80 Dec-12 0.0 21
Canadad C$10.39 5.79 6.29 e 1.5 16
France € 9.53 7.54 8.57 Jan-14 1.1 18
Greece €3.52f 2.73 3.82 Feb-12 0.0 25
Ireland € 8.65 6.84 7.20 Jul-11g 0.0 20
Japanh JPY780 4.46 5.31 Oct-13 2.0 15/18i
Netherlands 8.63j 6.83 7.59 Jul-14 1.2 23
New Zealand NZ$14.25 7.12 7.05 Apr-14 3.6 16
Portugall € 2.91 2.30 3.33 Oct-14 4.0 16
Spainl € 3.72 2.94 3.82 Jan-12 0.0 16
United Kingdom $6.50 6.50 6.50 Oct-14 3.0 21
United States US$7.25m 4.45 5.63 Jul-09 0.0 20
Source: British Embassies and High Commissions, Low Pay Commission (LPC) calculations of country minimum wage rates in pounds sterling using exchange rates and PPPs. PPPs derived from Comparative Price Levels (CPLs), OEDC Main Economic Indicators, September 2014. Exchange rates, Bank of England month average spot exchange rates, September 2014.

Notes:
a. For countries where the minimum wage is not expressed as an hourly rate, the rate has been converted to an hourly basis assuming a working time of 8 hours per day, 40 hours per week and 173.3 hours per month.

b. Exemptions and special rules apply in many cases. For example, in France and the US the full adult rate applies to young workers with tenure of more than six and more than three months respectively.

c. The Australian Federal National Minimum Wage Order, effective from first pay period on or after 1 July 2014.
d. Weighted average of provincial/territorial rates.
e. Date of last uprating varies between provinces.
f. Minimum hourly rate for ‘employees’. Different hourly rate operates for ‘blue collar’ workers.
g. The hourly minimum rate was reduced from €8.65 to €7.65 for adult workers on 1 Feb 2011. That reduction was reversed and the hourly rate went back up to €8.65 on 1 July 2011.

h. Weighted average of prefectural rates.
i. Age 15 to receive the regional minimum wage. Age 18 to receive the sectoral minimum wage.
j. Excludes 8 per cent supplement for holiday pay. Minimum wage based on a 40 hour working week. There are different minimum wage rates for those working a 38 or 36 hour week.

k. For all employees aged 16 and over, who are not either on the training minimum wage or the starting out minimum wage

l. Not including annual supplementary pay of two additional months of salary for full-time workers.
m. Federal minimum wage. Tipped employees receive a lower minimum wage depending on state laws.