Minimum Wage on the Rise

07/24/08  Print This Post Print This Post    3 Comments      Written by Julie Schwietert
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A wage increase goes into effect today for American workers who get paid the hourly minimum.

Up 70 cents to $6.55, the two percent of Americans who earn minimum wage will find that the increase hasn’t moved them too far up in the ranks of the world’s working poor.

While they wouldn’t likely want to trade places with someone in Burundi, where the minimum wage is 160 Burundian francs (average annual income on minimum wage: $111 USD), or Georgia, where the minimum wage will, if you save it all, add up to $287 USD a year), American wage laborers still fall far short (to the tune of about $6,000) of other developed countries.

In Australia, a minimum wage worker can earn around $19,053 a year, in Luxembourg around $19,856, and in the Netherlands just around $18,267.

But even in these countries, when you factor in the cost of living there’s not a whole lot left over for travel or any other “disposable” items or experiences.

What do you think about the US minimum wage? Do you support the fair or living wage movements? Share your thoughts below!

Photo: ScooterFlix


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About the Author

Matador ID: collazo

Julie Schwietert is the managing editor of Matador Network. She contributed a chapter to the recently published book, The Voluntary Traveler, and is currently working on five features for Fodor's Puerto Rico, 6th Edition.

3 Comments... join the discussion!

  • Eva replied on July 24, 2008

    $6.55?? And that's across the US?! Ours vary by province, which helps (a little) to address varied costs of living… I don't imagine $6.55 gets you very far in San Francisco or New York. When I was slaving over a deep fryer in high school, I was earning $6.85… but that was 10 years ago. I think it's around $10 in Ontario now. The big thing, though, is the question of how many jobs only pay the minimum. Where I live, there are actually very few positions that only pay the minimum – a cashier in a grocery store, for example, would earn at least a dollar or two more an hour. Even McDonalds pays more than the minimum – plus benefits, if you're full time. If minimum wage jobs are restricted to those generally filled by young, first-time employees (in other words, those who don't have dependents) that makes a big difference.

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  • Hal replied on July 24, 2008

    I think different states (CA and NY, for example), might have their own higher minimums. The federal one is simply the lowest you can go. Still, seems like if you have a family, and you and your partner are making anything under $10, it's not enough. A minimum wage should cover all the necessities plus enable you to save a little every month.

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  • rowan replied on July 24, 2008

    yeah 6.55 thats what I am making now at JCPenneys

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