Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Wages and salaries worldwide - statistics & facts
As the world's economy has continued to grow over the past decades, so have wages and salaries, with the global net national income per capita reaching 9,700 U.S. dollars in 2021. The important economic growth in emerging economies such as China and India has greatly contributed to this development. Nevertheless, while wages have increased, a minority has secured more than the vast majority. Moreover, for most people, wages have not kept up with the high inflation rates seen in many countries over recent years.
However, while many are struggling to make ends meet, the world's richest ten percent hold more than three-fourths of the global wealth. For instance, in the United States, the Gini index has increased since 1990, meaning that income inequality has grown. In general, wealth inequality contributes to increasing societal tensions, and when the gap between the rich and the poor grows too big, trust in a country's government may decrease, as seen in the United States since the early 2000s.
Furthermore, salaries vary significantly between industries. While managing consultants with higher education earned close to 145,000 U.S. dollars annually in 2024, software developers researching at academic institutions earned just around 50,000 U.S. dollars annually.
The impact of inflation and wealth inequality
Following the COVID-19 pandemic that disrupted production and transport chains worldwide and the Russian invasion of Ukraine in February 2022 that caused an energy crisis in Europe, consumer prices skyrocketed in several countries through 2022 and 2023. As a result, real wage growth, which takes inflation into account, was estimated to have declined by almost one percent in 2022, before increasing again in 2023 and 2024. The loss of purchasing power causes worries worldwide, and many are at risk of falling into poverty.However, while many are struggling to make ends meet, the world's richest ten percent hold more than three-fourths of the global wealth. For instance, in the United States, the Gini index has increased since 1990, meaning that income inequality has grown. In general, wealth inequality contributes to increasing societal tensions, and when the gap between the rich and the poor grows too big, trust in a country's government may decrease, as seen in the United States since the early 2000s.
Regions and industries with the highest wages
Considering purchasing power parity (PPP), Luxembourg was the country with the highest monthly salaries in the world in 2024. Overall, most of the countries with the highest salaries are found in Western Europe. Looking at national income per capita through the world regions, the highest are found in North America, where the income per capita has increased the most since 1970. Income per capita also rose significantly in East Asia, the Middle East, as well as in Latin America, underlining the economic development in emerging economies over the past decades.Furthermore, salaries vary significantly between industries. While managing consultants with higher education earned close to 145,000 U.S. dollars annually in 2024, software developers researching at academic institutions earned just around 50,000 U.S. dollars annually.
Gender pay gap
Finally, salaries tend to be highest within industries dominated by men, such as banking and finance, whereas education and care work, with a high majority of female employees, usually have lower salaries. Additionally, women are still underrepresented in leadership positions. These are just some of the reasons why a gender pay gap still exists worldwide.
