Minimum wage

What is Minimum wage?

Minimum wage is the lowest hourly or monthly pay an employer may legally pay an employee, set by national or, in some countries, regional law, and it varies widely across the EU and beyond.

Rates differ sharply between countries and are usually reviewed annually, so a figure that is compliant this year needs checking again next year rather than assumed to still apply. Some countries also set different rates by age or sector.

For a company hiring across several countries, the practical risk is not knowing the rate exists but tracking which rate applies to which employee as it changes - which is a payroll and compliance task, not something a leave-and-records system handles on its own.

Related terms

• Gross vs net salary
• Payroll