Minimum Wages in Emerging Countries (2016)

2016/01/21

Summary

 MarkLines Co., Ltd. has compiled data on minimum wages for the automotive industry as of January 2016 in ten emerging countries and twelve regions.

Mexico - Minimum daily wages in Mexico rose by 4% year-on-year to MXN 73.04 (approximately USD 90 per month) in urban areas, and 3% y/y to MXN 68.26 (approximately USD 85 per month) in provincial areas. Minimum wages in Mexico are the lowest, and compared to other countries the increase rate remains stable at a low level. However, it should be noted that daily wages have to be paid even on holidays except for day laborers, and there are various allowances not included in minimum wages. The average monthly pay for general workers in the manufacturing industry varies between USD 260 (the same with wages in Indonesia and the Philippines) and USD 360 (at the same level with India and Thailand).

China - Minimum monthly wages in China rose by 11% y/y in Shanghai to CNY 2,020 (approximately USD 310), and 22% in Guangzhou to CNY 1,895 (approximately USD 290). These figures are the highest among the countries and regions covered in this report, and wages in both areas have increased by more than two times y/y from 2010. Average wages in China are lower than those in Brazil and Russia, but higher than those in ASEAN member states, India, and Mexico. However, compared to wages in developed countries, minimum wages in China are less than half, and average wages about one third.

Vietnam - Minimum monthly wages in Vietnam rose by 13% y/y in Region II (Da Nang, etc.) to VND 3.1 million (approximately USD 140). This represents a 2.6 times increase in the local currency from 2010 but the minimum wages are about the same as average wages, which rank the lowest among the countries and regions covered in this report.

Indonesia - Minimum monthly wages in Indonesia rose by 13% y/y to IDR 3.33 million (approximately USD 240) in the Karawang Regency of West Java. This represents a nearly 5-fold increase from 2010, and an unusually high increase rate among the countries and regions compared in this report. However, Indonesia ranks the lowest next to Vietnam in terms of average wages.

Philippines - The minimum daily wage for Manila rose by PHP 15 to PHP 481 (approximately USD 225 per month) in April 2015, but a one year's extension was granted to manufacturers unable to comply. The increase rate remains stable at the lowest level among the countries and regions covered in this report.

Malaysia - The minimum monthly wage in Malaysia was set at MYR 900 (approximately USD 200) in all areas of the Malay Peninsula in 2013. However, it will rise to MYR 1,000 (approximately USD 230) in July 2016.

Thailand - The minimum daily wage in Thailand was set at THB 300 (approximately USD 180 per month) for the whole country in 2013. It has been decided that this wage rate will remain in effect until June 2016. However, actual pay in the automotive industry has been rising by 7 to 8 percent every year due to strong demand for higher wages.

India – In India, local governments set minimum wages by industry type, and these are revised at least once every five years. The minimum monthly wage in New Delhi was set as INR 8,086 (approximately USD 120) in October 2013, and has not been revised to date. In December 2015, a draft bill was presented to the Cabinet proposing a uniform minimum wage that would apply equally to all localities.