Unified Metrics Library - Entry level wage to minimum wage ratio
Helper question
If a significant proportion of employees were compensated based on wages subject to
minimum wage rules, what was the relevant ratio of the entry level wage to the minimum wage,
during the period?
Summary
Entry level wages paid compared to local minimum wages show the competitiveness of an
organization's wages and provide information relevant for assessing the effect of wages on the
local labor market.
Unit
%
Description
The lowest wage shall be calculated for the lowest pay category, excluding interns and apprentices. This is to be based on the basic wage plus any fixed additional payments that are guaranteed to all own workers.
Regulatory Definition
Minimum wage means the minimum remuneration set by law or collective agreements that an employer, including in the public sector, is required to pay to workers for the work performed during a given period.
Computation
Ratio = Entry-level wage / Minimum wage
Sources
Examples
Assuming an organisation has an entry-level wage of 15 eur per hour, and the minimum wage set by the national legislation is 10 eur per hour. Hence, the ratio would be 1.5, meaning that the entry-level wage is 1.5 times higher.