Minimum wage

What is minimum wage?

Minimum wage is the lowest hourly, daily, or monthly compensation that employers are legally required to pay workers for their labor, as established by national or local governments.

The purpose of minimum wage laws is to protect workers from exploitation and ensure a basic standard of living. Rates vary widely across countries and may also differ by region, age group, industry, or job type within the same country.

For example, in the United States, the federal minimum wage is $7.25 per hour (as of 2025), but many states and cities have enacted significantly higher local minimum wages. In contrast, countries like Australia, France, and the United Kingdom maintain nationwide minimum wage standards that are adjusted annually. Some countries also define minimum wages through collective bargaining agreements rather than legislation.

In certain jurisdictions, exceptions may apply for certain groups of workers, such as:

• Workers under a specific age
• Apprentices
• Tipped employees
• Workers in agricultural sectors

Employers are responsible for understanding which rates apply to each employee and ensuring timely updates when legal changes occur.

Why does this matter for employers?

As mentioned, complying with minimum wage laws is a legal requirement and a core part of responsible payroll management. Underpaying employees — whether due to error or misclassification — can result in serious fines, back pay claims, reputational damage, and/or legal action.

For global employers managing distributed teams, it’s essential to stay informed about local minimum wage regulations in every country and region where they hire. This ensures not only compliance but also fair and competitive compensation practices.

How can Remote help?

Remote continuously monitors minimum wage requirements across all supported countries and jurisdictions. When you hire through Remote, our platform helps you maintain compliance and build equitable compensation structures. Learn more.