Daily Management Review

Ten countries with the cheapest labor force


02/01/2017


It is very difficult to find someone who would have been completely satisfied with their salary. Very often, people believe that they are underpaid.



Andrew Regan
Andrew Regan
However, salaries in developing countries are very low compared to Western standards, and still people have to survive. Of course, the cost of living there is much lower. It is not surprising that many Western companies place their production in these countries on order to save on labor costs.

It is important to note that in addition to labor costs, companies have to take into account a number of other factors: political stability, quality of infrastructure, access to technology, and much more.

Below is a list of countries with the lowest wages.

10. Malawi - $ 412 annually

Just like many developing countries, Malawi's economy is dependent on donor assistance, in particular the IMF and other countries that commit funding for the country. In terms of investments, Malawi is one of the safest destinations in Africa. In addition, the labor force there is very cheap - $ 0.17 per hour, that is, just $ 412 annually. This wage is considered low even for Malawi’s residents.

9. Guinea-Bissau - $ 372 annually

Guinea-Bissau has one of the lowest GDP per capita, and most of local citizens live below the poverty line. Agriculture is the leading sector of the economy. Fishing and growing nuts are the most popular occupations here. Due to the fact that two-thirds of the population lives in poverty, wages are also low - $ 0.17 per hour, that is, $ 30 and a bag of rice in a month.

8. Venezuela - $ 361 annually

Venezuela is one of the most urbanized countries in the region. Most of the country’s population lives in urban areas, such as Caracas. Venezuela possesses huge reserves of oil, yet this fact does not help the country cope with its economic problems. At the moment, Venezuela suffers from skyrocketing inflation, and most of the people live in poverty despite the abundant oil reserves. The minimum wage here is only $ 0.17 per hour, which is $ 361 per year.

7. Gambia - $ 317 annually

Almost a third of Gambia's population lives below the poverty line. The country's economy depends on agriculture, tourism and the fishing sector. These industries employ the largest number of people. The minimum wage here is only $ 0.13 per hour, which is $ 317 per year.

6. Tanzania - $ 240 annually

Tanzania is known as a destination for wildlife lovers. Since Tanzania used to be a British colony, majority of local population speaks in English. Tanzania is a developing country, so local infrastructure is not of high quality. Therefore, conditions for doing business there are not ideal. Cost of living in the country is very low, and a large proportion of the population lives in poverty. The minimum wage there - $ 0.1 per hour (just $ 20 monthly).

5. Bangladesh - $ 228 annually

Bangladesh is known for its cyclones and natural disasters. Most of the population is engaged in farming. At the same time, cost of living there is among the lowest in the region. Cheap labor makes the country good for business. Minimum wage there is $ 0.09 an hour, and minimum payment per month - $ 19, but this is not true for all sectors. For example, an employee in the textile industry is paid $ 68 per month.

4. Kyrgyzstan - $ 181 annually

The country's population is about 6 million people. It’s not easy to do business there because of language barrier, weather conditions and terrain. However, the country is a great place for businessmen in other respects, including in terms of wages. The minimum wage is $ 0.09 an hour. Managers receive $ 14. 

3. Cuba - $ 108 annually

Cuba is a beautiful island country with an amazing climate and stunning nature. It welcomes crowds of tourists who enjoy special atmosphere of the island. Recently, Cuban and US relations warmed, but it can also mean that US companies would want to transfer their business to Cuba as minimum wage in the country is very low - $ 0.05 per hour, which makes $ 9 per month. 

2. Georgia - $ 96 annually

Doing business in Georgia can be quite lucrative, as minimum wage is extremely low there. Minimum wage in the private sector - $ 8 per month, which is only $ 0.05 for hour. Sources also say that some locals are willing to work for $ 0.24 an hour, which would be very beneficial for those who wants to save on labor force.

1. Uganda - $ 22 annually

Uganda is a developing country with a population of 37.8 million people. Since Uganda was a British colony, the official language there is English. Salaries there starts from $ 0.01 per hour, which is $ 1.7 per month and $ 22 per year. This is a very low level of wages, especially when compared to the minimum wage in other countries. Nevertheless, the cost of living in Uganda is also very low.

source: therichest.com






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