COMPLIANCE
Why your payslip tells a global story T hose people who believe payroll is just a matter of ‘pressing a button’ haven’t seen the global wage rollercoaster. As payroll professionals, we’re
Jeni Morris, IPPE Consultant, looks at how minimum wage rates are changing across the world
those “urgent” payslip queries seem a little less stressful.
you’re now juggling: ● more frequent minimum wage reviews ● diverse interpretations of the EU Directive ● local quirks in wage calculation and taxation ● rethinking labour cost comparisons between the East and West. And yet, while the Directive helps ensure wages reflect economic conditions, it still sidesteps the big question of whether these minimum wages offer a decent standard of living. Only a few countries, like Slovenia, are linking wage growth to the real cost of essentials. It’s a lot to think about for those of us knee-deep in automatic enrolment, reconciliations and national minimum wage calculations. But understanding the bigger picture adds meaning to our daily tasks. Behind every
Europe’s quiet revolution Meanwhile, Europe is having a wage revolution. Luxembourg still leads, with a monthly minimum wage of around €2,638. But Bulgaria, once one of the lowest paying, now offers €551 / month. And when you adjust for what those euros can buy, the difference between Europe’s highest and lowest minimum wages has shrunk from over 20:1 to just 2:1. The EU Minimum Wage Directive: compliance gets interesting What’s behind all this movement? The EU Minimum Wage Directive, which requires countries to regularly: ● review their minimum wages ● consult with unions and employers ● consider benchmarks like 60% of the median wage or 50% of the average. The result? Eastern Europe is racing to catch up. Romania’s minimum wage jumped nearly 23% between 2024 and 2025. Hungary, Croatia, Slovakia – they’re all on the move. Why payroll professionals should care For payroll professionals, this isn’t just trivia, it’s a compliance challenge. Wage floors are shifting quickly. If your company operates across borders,
used to juggling real time information deadlines, calculating statutory pay and fielding the eternal “Where’s my payslip?” emails. But sometimes, it’s worth stepping back and asking, how does our minimum wage stack up against the rest of the world?
The UK: £12.21 an hour and counting
Let’s start at home. As of April 2025, the UK’s National Living Wage (NLW) is £12.21 per hour for workers aged 21 and over. That’s just shy of £24,000 a year for full-time work – not quite enough for a penthouse in Mayfair, but certainly enough to keep you in Pret sandwiches and Netflix subscriptions. Bangladesh: 45p a day and that isn’t a typo! Now, let’s take a detour to Bangladesh, where the minimum wage is a jaw- dropping $13.67 per month – about 45p a day. Yes, you read that right. A UK minimum wage worker earns nearly the same in an hour as a Bangladeshi garment worker does in an entire month. Next time you grumble about the price of lunch, remember, some workers are budgeting 10p for the whole day. Around the world in 80 payslips The pattern repeats elsewhere. In Mali, the minimum wage is $57 per month. In Haiti, it’s $68. Nigeria and Ethiopia? Just over $70. Suddenly,
wage slip is a story. So, the next time someone asks if payroll is just “pressing a button,” smile and say, “Only if that button controls
the future of global income equality.” n
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
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