Sri Lanka ranks 120th in global minimum wage comparison, trailing South Asian neighbours

By The Pulseline News Desk

Sri Lanka has been ranked 120^th among 130 countries in a global comparison of minimum wages, with the country recording a purchasing power parity (PPP)-adjusted monthly minimum wage of just $200, according to a comparison published by Visual Capitalist.

The ranking, based on 2024 data from the International Labour Organization (ILO), highlights the relatively low purchasing power of minimum-wage earnings in Sri Lanka when compared with workers in most other countries surveyed.

Unlike a straightforward conversion of local wages into US dollars, the comparison adjusts minimum wages for purchasing power parity, taking into account differences in the cost of living between countries. The resulting figures are intended to provide a more meaningful comparison of what minimum-wage workers can actually purchase with their earnings.

Sri Lanka’s position is particularly notable when compared with its South Asian neighbours.

Pakistan ranks 68^th with a PPP-adjusted monthly minimum wage of $570, while Nepal ranks 78^th at $490 and Bangladesh 89^th at $379. India, despite ranking 111^th, also records a higher figure than Sri Lanka at $233.

This reportedly leaves Sri Lanka at the bottom of the comparison among the five South Asian economies included in the ranking.

The country’s $200 figure is also only marginally above those of the economies occupying the bottom of the global table. Only 10 countries rank below Sri Lanka, including Niger, Bhutan, Haiti, Guinea, the Central African Republic, Sierra Leone, Ghana, Kyrgyzstan, Guinea-Bissau and Gambia.

At the opposite end of the ranking, Switzerland records the world’s highest PPP-adjusted monthly minimum wage at $3,804.

However, Switzerland differs from most countries in the comparison as minimum wages are determined at the regional level rather than through a nationwide statutory minimum wage.

Germany follows with $2,928, while the United Kingdom records $2,902 and the Netherlands $2,876.

Australia ranks fifth at $2,819, followed by Belgium at $2,752, Iceland at $2,730 and New Zealand at $2,673. France and Ireland round out the top 10 with PPP-adjusted monthly minimum wages of $2,465 and $2,433, respectively.

The comparison also shows a significant gap between minimum-wage purchasing power in Asia’s leading economies and Sri Lanka.

South Korea records the highest figure in Asia, ranking 11^th globally with a PPP-adjusted monthly minimum wage of $2,362. Japan ranks 16th with $1,839.

The United States (US) ranks 25^th, with a PPP-adjusted monthly minimum wage of $1,257. The US calculation is based on the federal minimum wage of $7.25 per hour, which has remained unchanged since 2009, although several states and local jurisdictions have established substantially higher minimum wages.

The figures, however, should not be interpreted as the actual amount workers receive after converting their wages directly into US dollars.

PPP adjustments are reportedly designed to account for differences in domestic purchasing power and living costs. The figures also do not take into consideration factors such as taxation, employee benefits, or substantial variations in the cost of living within individual countries.

Nevertheless, Sri Lanka’s position near the bottom of the ranking provides a broader international context for the country’s ongoing debate over wages, household purchasing power and the cost of living.

The ranking comes at a time when the adequacy of wages has become an increasingly important issue for workers and policymakers, particularly as households continue to face pressure from the cost of essential goods and services.

While a PPP-adjusted comparison cannot by itself determine whether Sri Lankan wages are adequate, the $200 equivalent places the country’s minimum-wage purchasing power well below that of all four South Asian neighbours included in the comparison, underscoring the wage gap that Sri Lanka faces even within its own region.