Where is the best salary in the world paid? The latest report “Wages & Salaries Worldwide 2025”, conducted by Statista, provides a global overview of wage structures, from countries with very high incomes to those with notably low wages. Through analysis of purchasing power parity (PPP), regional comparisons, and data on the gender gap or inequality, the dossier offers insight into the deep differences that persist in labor compensation worldwide, including the case of Mexico and other Latin American nations.

Which country has the highest salary in the world?

According to figures from the Statista dossier, the country that tops the ranking of highest average monthly salaries is Luxembourg, with $8,345.54 adjusted by purchasing power parity (PPP). This metric accounts for the local cost of living, making salary comparisons in PPP terms fairer than using nominal currencies alone.

The report notes that Luxembourg is not the only European country with high income levels. Belgium ranks second ($7,547.95 PPP), followed by Netherlands ($6,427.40), Norway ($6,032.03), and Austria ($6,002.12). Among non-European countries, United States stands out with $5,985.29 PPP and Bahamas ($5,092.22). These data suggest that most developed economies in Western Europe and North America register high wages when adjusted for each region’s purchasing power.

However, having a high average salary doesn’t mean internal gaps don’t exist. Several of these countries also experience significant wage inequality, although they tend to have stronger social welfare mechanisms than emerging economies.

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Which country has the lowest salary in the world?

At the other end of the spectrum, the report highlights that Rwanda ranks last in average monthly wages, with $149.27 PPP. This means a worker in Rwanda earns in a month less than one-fifth of what a salaried worker in Luxembourg earns in a single day, when considering cost-of-living differences. Other African nations are also close behind, such as Gambia ($267.58) and Ethiopia ($312.27), reflecting deep disparities in economic development and labor conditions.

The predominance of African countries in the low-salary rankings also points to persistent high informality, lack of social protection, and limited formal employment opportunities. Statista’s report emphasizes that minimum wage policies in these nations are often not enforced or are insufficient to cover basic needs.

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Which are the 5 countries with the lowest salaries in the world?

To offer a more specific outlook, here are the five countries with the lowest average monthly incomes (in PPP terms) according to Statista’s dossier:

1. Rwanda – $149.27 USD
2. Gambia – $267.58 USD
3. Ethiopia – $312.27 USD
4. Kenya – $322.06 USD
5. Nigeria – $343.66 USD

In total, 17 of the 20 countries with the lowest wages are located in Africa, confirming the continental disparity on a global scale.

Salaries around the world: statistics

Statista’s data includes numerous global statistics on wages and income. Among the key findings:

• Real wage growth (2006–2024): After steady increases, 2022 saw a contraction of -0.9% due to the pandemic and inflation, followed by a projected recovery of 1.8% for 2023 and 2.7% for 2024.
• National income per capita: The global average rose from $694 in 1970 to $9,750 in 2021. However, Latin America, Sub-Saharan Africa, and South Asia did not achieve significant increases compared to North America or Europe.
• Gender gap: Globally, women generate only 28% of total labor income. Additionally, less than 30% work in STEM (science, technology, engineering, and mathematics) fields.
• Domestic and informal workers: In regions like Latin America and the Caribbean, these workers earn less than half of what formal employees receive.

What is the Gini coefficient and what does it reveal about global wages?

The Gini coefficient measures income or wealth distribution within a country, expressed on a scale from 0 to 100:

• 0 represents perfect equality (everyone earns exactly the same).
• 100 represents absolute inequality (one person receives all the income).

This coefficient shows the dispersion of income within a country’s population. The higher it is, the greater the gap between rich and poor. It is thus an essential indicator for understanding whether a country’s prosperity is equitably shared or concentrated in a few sectors.

Put another way, the Gini coefficient quantifies how far actual income distribution deviates from perfect equity. Its application goes beyond wages: it can also be used to analyze the distribution of resources such as wealth, land, or financial assets.

Historically, countries with active social policies, progressive taxation, and high public spending on education and health tend to have lower Gini coefficients.

What is Mexico’s Gini coefficient?

In the context of Latin America, one of the most unequal regions in the world, Mexico ranks among the economies with a considerably high Gini. According to Statista, it stood at 43.5 in 2022. While minimum wage increases and social programs have been implemented, the country still faces:

• High labor informality (over 50% of the workforce).
• Deep-rooted inequalities reflected in wage disparities across different sectors and regions.
• Lack of social security coverage for much of the working population.

Which country has the best Gini coefficient?

Among the countries with the best Gini scores (i.e., lowest inequality within the G20) are:

1. France, with 32.4.
2. Republic of Korea (South Korea) and Japan, both with 32.9.
3. Germany, with 32.8.

In contrast, South Africa, Brazil, and Turkey exhibit the highest Gini scores (i.e., greatest inequality). In fact, South Africa leads the global index with a value of 63, highlighting the vast wealth gap in the African nation.

Mexico and Latin America: wage gap and informality

The Latin American region stands out for:

• Higher inequality rates than other parts of the world. Countries like Colombia (54.8) and Brazil (52) are among the most unequal.
• Stagnant wage growth. Despite occasional increases, inflation and currency devaluation reduce purchasing power.
• High informality especially affecting women, youth, and rural sector workers.
• Mexico: In addition to its Gini at 43.5, local studies show that millions of workers earn below national averages, particularly those in the informal sector or in small businesses without access to formal contracts.

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