The average wage is a measure of total income after taxes divided by total number of employees employed. In this article, the average wage is adjusted for living expenses "purchasing power parity" (PPP).
The OECD (Organization for Economic Co-operation and Development) dataset contains data on average annual wages for full-time and full-year equivalent employees in the total economy. Average annual wages per full-time equivalent dependent employee are obtained by dividing the national-accounts-based total wage bill by the average number of employees in the total economy, which is then multiplied by the ratio of average usual weekly hours per full-time employee to average usually weekly hours for all employees.
Average wages are converted in US dollar nominal using 2013 US dollar nominal for private consumption and are deflated by a price deflator for private final consumption expenditures in 2013 prices. The OECD is a weighted average based on dependent employment weights in 2013 for the countries shown.
Gross average monthly wage estimates for 2015 are computed by converting national currency figures from the UNECE (United Nations Economic Commission for Europe) Statistical Database, compiled from national and international (OECD, EUROSTAT, CIS) official sources. Wages in US dollars are computed by the UNECE Secretariat using nominal exchange rates.
Gross average monthly wages cover total wages and salaries in cash and in kind, before any tax deduction and before social security contributions. They include wages and salaries, remuneration for time not worked, bonuses and gratuities paid by the employer to the employee. Wages cover the total economy and are expressed per full-time equivalent employee.
|Bosnia and Herzegovina||$801|
|Trinidad and Tobago||$736|
Average wage is the mean salary of a group of workers. This measure is often monitored and used by government or other organisations as a benchmark for the wage level of individual workers in an industry, area or country.
The usefulness of this measure in assessing wage levels is debatable, particularly in an economy where low pay is prevalent, due to the tendency for the wages of a minority of high earners to 'skew' the average upwards. It has been argued that the median (midpoint) worker's wage is a better indicator in these circumstances; this measure is used in the UK by both the Office for National Statistics and the Scottish Low Pay Unit in examining wage levels.
Certain UK organisations, usually socialist or left-of-centre political groups, have traditionally had a policy that members should never accept wages higher than the wage of the average working class person whilst being employed by that organisation or in a representative capacity. Deputies and officials paid an average worker's wage are also a feature of the Dictatorship of the Proletariat described in Marx's account of the Paris Commune, The Civil War in France, as well as in Lenin's The State and Revolution commentary on Marx's pamphlet, although not all people who draw an average workers wage subscribe to Marxist principles.
This idea is based on the idea that politicians (or trade union officials) are there to serve the people of the country rather than earn themselves a fortune and/or raise their status (also known as careerism). Proponents claim that high wages for politicians are a waste of taxpayers' money and distance the politician from the concerns of the working class.
Examples of people taking only an average worker's wage are Socialist Party politician Joe Higgins, former MP Dave Nellist in the UK, John Marek, Forward Wales' Welsh Assembly member for Wrexham, and Sinn Féin politicians in Ireland.
In The Ragged Trousered Philanthropists, Robert Tressell notes that the Labour Representation Committee MPs of the day took only an average workers' wage.BRIC
BRICS contain 5 nations-:
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four". A related acronym, BRICS, adds South Africa.
There are arguments that Indonesia should be included into grouping, effectively turning it into BRIIC or BRIICS.Previously BRIC was coined by Jim O'Neill in 2001 as an acronym of four countries that were all deemed to be at a similar stage of newly advanced economic development, but in 2009 the leaders of BRIC countries made the first summit and in 2010 BRIC became a formal institution. South Africa began efforts to join the BRIC grouping and on December 24, 2010, was invited to join BRICS. The original aim of BRIC was the establishment of an equitable, democratic and multi-polar world order, but later BRIC became a political organization, especially after South Africa joined. Jim O'Neill, told the summit that South Africa, at a population of under 50 million people, was just too small as an economy to join the BRIC ranks.But the future of BRIC as an economy group is questionable. In 2012, a book with the title Breakout Nations mentioned that it is hard to sustain rapid growth for more than a decade.Compensation of employees
Compensation of employees (CE) is a statistical term used in national accounts, balance of payments statistics and sometimes in corporate accounts as well. It refers basically to the total gross (pre-tax) wages paid by employers to employees for work done in an accounting period, such as a quarter or a year.
However, in reality, the aggregate includes more than just gross wages, at least in national accounts and balance of payments statistics. The reason is that in these accounts, CE is defined as "the total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the latter during the accounting period". It represents effectively a total labour cost to an employer, paid from the gross revenues or the capital of an enterprise.
Compensation of employees is accounted for on an accrual basis; i.e., it is measured by the value of the remuneration in cash or in kind which an employee becomes entitled to receive from an employer in respect of work done, during the relevant accounting period – whether paid in advance, simultaneously, or in arrears of the work itself. This contrasts with other inputs to production, which are to be valued at the point when they are actually used.
For statistical purposes, the relationship of employer to employee exists, when there is an agreement, formal or informal, between an enterprise and a person, normally entered into voluntarily by both parties, whereby the person works for the enterprise, in return for remuneration in cash or in kind. The remuneration is normally based on either the time spent at work, or some other objective indicator of the amount of work done.
For social accounting purposes, CE is considered a component of the value of net output or value added (as factor income). The aim is not to measure income actually received by workers, but the value which labour contributes to net output along with other factors of production.
The underlying idea is that the value of net output equals the factor incomes that generate it. For this reason, some types of remuneration received by employees are either included or excluded, because they are regarded as either related or unrelated to production or to the value of new output.
In different countries, what is actually included and excluded in CE may differ somewhat. The reason is that the way in which workers are compensated for their labour may be somewhat different in different types of economies. For example, in some countries workers get substantial payments "in kind", in others they don't. Systems of social insurance also differ between countries, and some countries have little social insurance. One has to keep this in mind when comparing CE magnitudes for different countries.
A compensation system has to be aligned to the mission, vision, business strategy and organizational structure of a company to design the compensation plan in an efficient way to can achieve the goals. Businesses within the same organization will have different competitive conditions, acquire different business strategies, and design compensation strategies. A general compensation plan consists of three components: a base compensation, rewarding incentives, and indirect compensation in form of benefits.Gross domestic product
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually.GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore using a basis of GDP per capita at purchasing power parity (PPP) is arguably more useful when comparing differences in living standards between nations.Household income in the United States
Household income is an economic measure that can be applied to one household, or aggregated across a large group such as a county, city, or the whole country. It is commonly used by the United States government and private institutions to describe a household's economic status or to track economic trends in the US.
One key measure is the real median level, meaning half of households have income above that level and half below, adjusted for inflation. According to the Census, this measure was $61,372 in 2017, an increase of $1,063 or 1.8% versus 2016, the second consecutive record level year. This measure was $60,309 in 2016 (up $1,833 or 3.1% vs. 2015) and $58,476 in 2015 (up $2,863 or 5.1% vs. 2014).The distribution of U.S. household income has become more unequal since around 1980, with the income share received by the top 1% trending upward from around 10% or less over the 1953–1981 period to over 20% by 2007. After falling somewhat due to the Great Recession in 2008 and 2009, inequality rose again during the economic recovery, a typical pattern historically.List of American countries by monthly average wage
This is the map and list of American countries by monthly net (after taxes) average wage. The chart below reflects the average (mean) wage as reported by various data providers. The salary distribution is right-skewed, therefore more than 50% of people earn less than the average net salary. These figures have been shrinked after the application of the income tax. In certain countries, actual incomes may exceed those listed in the table due to the existence of grey economies. In some countries, social security, contributions for pensions, public schools, and health are included in these taxes.
The countries in purple on the map have net average salary in excess of $ 2,000 and in blue –in the range of $ 1,000 to $ 1,999, in green - in the range of $ 600 to $ 999, in yellow - in the range of $ 300 to $ 599, and in red below $ 300.
USA's net wage is calculated without state's taxesList of U.S. states and territories by income
This is a list of U.S. states, territories and the District of Columbia by income.List of countries by GDP (nominal) per capita
This page lists the countries of the world sorted by their gross domestic product per capita at nominal values. This is the value of all final goods and services produced within a nation in a given year, converted at market exchange rates to current U.S. dollars, divided by the average population for the same year.
The figures presented here do not take into account differences in the cost of living in different countries, and the results vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations change a country's ranking from one year to the next, even though they often make little or no difference to the standard of living of its population.
Therefore, these figures should be used with caution. GDP per capita is often considered an indicator of a country's standard of living; although this is problematic because GDP per capita is not a measure of personal income.
Comparisons of national income are also frequently made on the basis of purchasing power parity (PPP), to adjust for differences in the cost of living in different countries. (See List of countries by GDP (PPP) per capita.) PPP largely removes the exchange rate problem but not others; it does not reflect the value of economic output in international trade, and it also requires more estimation than GDP per capita. On the whole, PPP per capita figures are more narrowly spread than nominal GDP per capita figures.
Non-sovereign entities (the world, continents, and some dependent territories) and states with limited international recognition (such as Kosovo, the State of Palestine and Taiwan) are included in the list in cases in which they appear in the sources. These economies are not ranked in the charts here, but are listed in sequence by GDP for comparison. In addition, non-sovereign entities are marked in italics.
Note that the Irish GDP data below is subject to material distortion by the tax planning activities of foreign multinationals in Ireland. 2015 Irish GDP is over 150% of 2015 Irish GNI. To address this, in 2017 the Central Bank of Ireland created "modified GNI" (or GNI*) as a more appropriate statistic, and the OECD and IMF have adopted it for Ireland. 2015 Irish GDP is 143% of 2015 Irish GNI*.
All data are in current United States dollars. Historical data can be found here.List of minimum wages by country
This is a list of official minimum wage rates of the 193 United Nations member states and former members of the United Nations, and also includes the following territories and states with limited recognition: Taiwan, Hong Kong, Northern Cyprus, Kosovo, and Palestine and other independent countries. Some countries may have a very complicated minimum wage system; for example, India has more than 1202 minimum wage rates.Median income
Median income is the amount that divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group. Mode income is the most frequently occurring income in a given income distribution.
Median income can be calculated by household income, by personal income, or for specific demographic groups.National average salary
The National Average Salary (or the National Average Wage) is the mean salary for the working population of a nation. It is calculated by summing all the annual salaries of all persons in work and dividing the total by the number of workers. It is not the same as the Gross domestic product (GDP) per capita, which is calculated by dividing the GDP by the total population of a country, including the unemployed and those not in the workforce (e.g. retired people, children, students, etc.).Per capita income
Per capita income (PCI) or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.Salary
A salary is a form of payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
From the point of view of running a business, salary can also be viewed as the cost of acquiring and retaining human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.
Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.
Salary is typically determined by comparing market pay rates for people performing similar work in similar industries in the same region. Salary is also determined by leveling the pay rates and salary ranges established by an individual employer. Salary is also affected by the number of people available to perform the specific job in the employer's employment locale.Wage
A wage is monetary compensation (or remuneration, personnel expenses, labor) paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed (a task wage or piece rate), or at an hourly or daily rate (wage labour), or based on an easily measured quantity of work done.
Wages are part of the expenses that are involved in running a business.
Payment by wage contrasts with salaried work, in which the employer pays an arranged amount at steady intervals (such as a week or month) regardless of hours worked, with commission which conditions pay on individual performance, and with compensation based on the performance of the company as a whole. Waged employees may also receive tips or gratuity paid directly by clients and employee benefits which are non-monetary forms of compensation. Since wage labour is the predominant form of work, the term "wage" sometimes refers to all forms (or all monetary forms) of employee compensation.Wage slavery
Wage slavery is a term used to draw an analogy between slavery and wage labor by focusing on similarities between owning and renting a person. It is usually used to refer to a situation where a person's livelihood depends on wages or a salary, especially when the dependence is total and immediate.The term "wage slavery" has been used to criticize exploitation of labour and social stratification, with the former seen primarily as unequal bargaining power between labor and capital (particularly when workers are paid comparatively low wages, e.g. in sweatshops) and the latter as a lack of workers' self-management, fulfilling job choices and leisure in an economy. The criticism of social stratification covers a wider range of employment choices bound by the pressures of a hierarchical society to perform otherwise unfulfilling work that deprives humans of their "species character" not only under threat of starvation or poverty, but also of social stigma and status diminution.Similarities between wage labor and slavery were noted as early as Cicero in Ancient Rome, such as in De Officiis. With the advent of the Industrial Revolution, thinkers such as Pierre-Joseph Proudhon and Karl Marx elaborated the comparison between wage labor and slavery, while Luddites emphasized the dehumanization brought about by machines. Before the American Civil War, Southern defenders of African American slavery invoked the concept of wage slavery to favorably compare the condition of their slaves to workers in the North. The United States abolished slavery after the Civil War, but labor union activists found the metaphor useful and appropriate. According to Lawrence Glickman, in the Gilded Age "[r]eferences abounded in the labor press, and it is hard to find a speech by a labor leader without the phrase".The introduction of wage labor in 18th-century Britain was met with resistance, giving rise to the principles of syndicalism. Historically, some labor organizations and individual social activists have espoused workers' self-management or worker cooperatives as possible alternatives to wage labor.Wage theft
Wage theft is the denial of wages or employee benefits rightfully owed an employee. It can be conducted by employers in various ways, among them failing to pay overtime; violating minimum-wage laws; the misclassification of employees as independent contractors, illegal deductions in pay; forcing employees to work "off the clock", or simply not paying an employee at all.
According to some studies, wage theft is common in the United States, particularly from low wage legal or undocumented immigrant workers. The Economic Policy Institute reported in 2014 that survey evidence suggests wage theft costs US workers billions of dollars a year. Some rights violated by wage theft have been guaranteed to workers in the United States in the 1938 Fair Labor Standards Act (FLSA).Wages and salaries
Wages and salaries are the remuneration paid or payable to employees for work performed on behalf of an employer or services provided. Normally, an employer is not permitted to withhold the wages or any part thereof, except as permitted or required by law. Employers are required by law to deduct from wages, commonly termed "withhold", income taxes, social contributions and for other purposes, which are then paid directly to tax authorities, social security authority, etc., on behalf of the employee. Garnishment is a court ordered withholding from wages to pay a debt.
Wages and salaries are typically paid directly to an employee in the form of cash or in a cash equivalent, such as by cheque or by direct deposit into the employee's bank account or an account directed by the employee. Alternatively, all or a part may be paid in various other ways, such as payment in kind in the form of goods or services provided to the employee, such as food and board.
For tax purposes, wages and salaries normally do not include other non-cash benefits received by an employee, such as flights, payment of school fees etc. These are usually referred to as fringe benefits.
In the national accounts, in accordance with the System of National Accounts, wages and salaries are the sum of remuneration paid to employees, including the values of any social contributions, income taxes, etc., payable to employees. For administrative convenience, or due to a legal requirement or some other reason all or a part of such payments may actually be withheld by the employer and paid directly to tax authorities, etc., on behalf of the employee. However, labour-related expenses of a business, such as payroll taxes, pension fund contributions, social insurance schemes, workers' compensation insurance, etc., are not counted as wages and salaries for national accounts purposes. Similar concepts apply to general accounting treatment of labour expenses.
Wages and salaries in cash consist of such amounts payable at regular intervals, such as weekly, monthly or other intervals, including payments by results and piecework payments; plus allowances, such as those for working overtime; plus amounts paid to employees away from work for short periods (e.g., on holiday, sick leave, etc.); plus ad hoc bonuses and similar payments; plus commissions, gratuities and tips received by employees.
Wages and salaries in kind consist of remuneration in the form of goods or services that are not necessary for work and can be used by employees in their own time, and at their own discretion, for the satisfaction of their own needs or wants or those of other members of their households.Working poor
The working poor are working people whose incomes fall below a given poverty line due to lack of work hours and/or low wages.
Largely because they are earning such low wages, the working poor face numerous obstacles that make it difficult for many of them to find and keep a job, save up money, and maintain a sense of self-worth.The official working poverty rate in the US has remained relatively static over the past four decades, but many social scientists argue that the official rate is set too low, and that the proportion of workers facing significant financial hardship has instead increased over the years. Changes in the economy, especially the shift from a
manufacturing-based to a service-based economy, have resulted in the polarization of the labor market. This means that there are more jobs at the top and the bottom of the income spectrum, but fewer jobs in the middle.There are a wide range of anti-poverty policies that have been shown to improve the situation of the working poor. Research suggests that increasing welfare state generosity is the most effective way to reduce poverty and working poverty.
Economic classification of countries
|Gross domestic product (GDP)|
|Gross national income (GNI)|
|Other national accounts|
|Net international |
investment position (NIIP)
|Purchasing power parity (PPP)|
|Gross national income (GNI)|
|Countries by region|