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Minimum WageGrocery store cashier, lifeguard, shampooer—these jobs might seem different on paper, but there’s one thing they all have in common: They often pay minimum wage.
In the US, the “minimum wage” is the smallest amount a business can pay an employee per hour by federal law. Currently, it’s $7.25—but that's just the federal mandate. States can set their own minimum wage laws, too (more on that later).
As of 2021, nearly 1.6 million Americans made the federal minimum wage of $7.25 per hour. Proponents of raising the minimum wage argue that doing so would lower the poverty rate, whereas opponents worry it could lead to inflation and job cuts.Explore Minimum Wage
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In the Netherlands, the minimum wage amounts to a full-time salary of roughly $34,192 per yearThe US minimum wage, however, only amounts to roughly $15K per year. This map shows how much minimum wage workers in countries around the world earn on an annual basis in US dollars. VoronoiThe Fair Labor Standards Act established a minimum wage—but it didn't cover everyoneA 1966 amendment created the “tip credit,” which allowed restaurants to pay below minimum wage if tips compensated the difference. However, this federal tipped minimum wage has remained frozen at $2.13 per hour since 1991, whereas the regular minimum wage has increased multiple times since then. The Center for American ProgressUS tipped employees receive the ‘subminimum wage’ of $2.13, unchanged since 1991Tipped employees (anyone who makes $30+ per month in tips) are not federally entitled to a traditional minimum wage. Customers determine their earnings. The National Restaurant Association believes that if restaurant owners are forced to pay above the subminimum wage for tipped workers, restaurants could be forced to close. SpotifyThe federal minimum wage in the US has been $7.25 per hour since 2009While some argue that raising it is essential for reducing poverty, others fear it could lead to inflation and job cuts. The complexity deepens with states setting their own minimum wages—some even below the federal rate—leading to a patchwork of wage laws. 1440 Daily DigestThe monthly minimum wage a full-time worker receives varies around the worldIn Luxembourg, for instance, the monthly minimum was roughly $2,140 as of January 2023. But in Nigeria, it was just $68 a month. Of course, the cost of living varies by country too. Visual CapitalistAn animation of how the minimum wage changed every year from 1968 to 2018In the United States, both the federal and state minimum wages have changed a lot over the years. See how—both in each state and at the federal level. EsriThis is the longest the US has gone without a minimum wage increase since 1938The US government hasn’t increased the federal minimum wage in more than a decade. Some people argue it's wrong that Congress needs to debate whether or not to raise the minimum wage—and that perhaps these raises should be tied to inflation. VoxDoes minimum wage hurt workers?Many economists traditionally believed raising the minimum wage hurt workers more than helped them. They argued that doing so would lead to job losses believing that if something is more expensive (like labor), people (like business owners) would want to buy less of it. However, recent research suggests otherwise. The EconomistThe US had roughly 1.6 million minimum wage workers as of 2021Typically, minimum wage workers are young. They’re not only more likely to be a woman than a man, but also more likely to be single than married. Debt.orgSince its inception in 1938, Congress has raised the federal minimum wage 22 timesIf you want all the details about when and why these rate increases happened check out this resource from the US Department of Labor. US Department of LaborSee every time the minimum wage has been raisedUnlike some other nations, the US minimum wage isn’t tied to inflation. So instead of it automatically rising alongside the cost of living, Congress has to vote to raise the minimum wage every time they think it’s necessary. TIMEMinimum wage laws are a relatively new phenomenon in the US Today, the federal minimum wage in the US is $7.25 per hour. But the country wasn’t founded with minimum wage laws in its DNA. The first federal minimum wage wasn’t set until 1938, when it was 25 cents per hour. PBS Origins The way the minimum wage is set in other countries often differs from US methodsUnlike the US, some countries set the minimum wage by industry through collective bargaining agreements. In Luxembourg, the minimum wage translates to roughly $19.50 per hour, currently making it the country with the highest minimum wage in the world. LanoWhen a state’s minimum wage differs from the federal's, the higher number wins outBeing that the federal government hasn’t raised the minimum wage in over 15 years, some states have taken matters in their own hands. Economic Policy InstitutePros and cons of minimum wageThe federal minimum wage hasn’t been raised since 2009. Over the past decade or so, proponents of significantly raising the minimum wage have argued that doing so could reduce reliance on government financial assistance programs and increase consumer spending. But opponents say higher labor costs could lead to job cuts. SoFiStates are increasingly using preemption laws to override local decisionsPreemption laws enable state legislatures to prevent cities and counties from enacting their own rules on issues like minimum wage, gun control, and housing. Their use has increased significantly in recent years. HarvardWatch a goldfish drive a carDutch engineer Thomas de Wolf created a car for a goldfish, or a water tank on wheels that is directed by the movements of the creature inside it. Using a motion-sensing camera, when Blub the fish moves to one side of the tank, the camera moves in the same direction. Guinness World RecordsMost Americans support age limits for justices, elected officialsAs members of Congress and Supreme Court justices continue to serve at an average age far older than in the past, polls show a majority of Americans favor setting an age limit for these roles. Roughly 79% support caps for federal elected officials, and 74% favor such limits for Supreme Court justices. A constitutional amendment would be required. Pew Research CenterHawaii is the most expensive state for funding a 40-year retirementIf someone wanted to retire by the time they were 40 years old in Hawaii, they would need to save an estimated $4,557,767. See how other states meaasure up in this article. GOBankingRatesMany states require higher direct wage amounts for tipped employees than the federal requirementEmployers of "tipped employees" are required to pay them $2.13 per hour in direct wages if that amount, combined with the tips, at least equals the federal minimum wage of $7.25. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer has to make up the difference. However, this differs from state to state. This interactive map shows what tipped workers make per hour in every state. OgletreeTipped workers in ‘$2.13 states’ experience an estimated 18.5% poverty ratesIn so-called “equal treatment states,” where tipped workers are subject to the normal federal minimum wage or higher rather than the tipped minimum wage, the poverty rate is 11.1%. Economic Policy InstituteAfter emancipation, many slaves went from working for free to working for tipsIn 1938, the New Deal established a minimum wage for one-fifth of the labor force, with many sectors—including service workers—not covered. Today, although the subminimum wage of $2.13 an hour is enforced, a large portion of those paychecks go to taxes like Social Security and Medicare. YouTubeDC has the highest share of low-income renters on housing assistance in the countrySeventy-two per every 1,000 residents in the nation's capital were low-income residents on housing assistance as of the year 2024. Visual CapitalistThe BNPL industry boomed amid a surge in online shopping during pandemic-era lockdownsThe buy now, pay later industry allows consumers to buy something immediately and pay in installments without the need for lengthy application and approval processes or high credit scores—and fintech companies Affirm, Klarna, and Afterpay are leading the charge by targeting young adults. WSJThe Fair Labor Standards Act gave workers more time for vacationsThe Fair Labor Standards Act of 1938 guaranteed time off for full-time employees, offering the opportunity for more vacations. Passed by President Franklin D. Roosevelt and celebrated by the labor movement, the law limited working hours, established overtime pay, and provided a minimum wage. TIMEThe best countries for work-life balance, rankedNew Zealand is number one, with universal healthcare and 26 weeks of paid maternity leave. Visual CapitalistThe average salary for full-time gig workers is roughly $60K a year in the USHigh-earners can make more than six figures, while close to 15% make less than the federal minimum hour wage. Most gig workers in the United States still have to file a tax return every year. Internal Revenue ServiceFrances Perkins was the first woman in the US to hold a cabinet positionPresident Franklin D. Roosevelt named her the United States Secretary of Labor in 1933. In her cabinet seat, she not only helped establish the first federal minimum wage in the US, but also the Social Security Act. Encyclopaedia BritannicaThe research that led to sourScientists are trying to figure out if there are unique receptors that respond to the molecules that make up flavors we associate with calcium, blood, batteries, and other items that often escape dinner menus. Taste researcher Dr. Danielle Reed says the minimum evidence for a taste category typically involves identifying dedicated receptors and then removing them to show the taste vanishes. Short Wave
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