Guatemala vs Timor-Leste

In Guatemala, the minimum wage is Q15.34/hr ($2 USD). In Timor-Leste, it is $115/mo. Timor-Leste has the higher rate by 5650% in USD terms. That nominal gap does not account for local prices; see the purchasing power comparison below for a cost-of-living-adjusted view. Workers in Guatemala may retain a larger share of their earnings if prices there are lower.

The average gross salary in Guatemala is Q5,800/mo ($756.19 USD), compared to $350/mo in Timor-Leste. In USD terms, workers in Guatemala earn approximately 116% more. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Guatemala and Timor-Leste is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Guatemala earn more in nominal terms, though how far that income stretches depends on local prices in Timor-Leste.

Guatemala has a longer standard work week at 48 hours, compared to 40 hours in Timor-Leste. Workers in Guatemala work 48 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Timor-Leste working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.

While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Guatemala has the higher GDP per capita at $14,369, which is 3.2x that of Timor-Leste at $4,423. From Guatemala's perspective, this means goods and services are priced at a higher economic level. A higher GDP per capita generally correlates with higher wages, higher consumer prices, and greater availability of goods and services. Workers moving between these two countries should expect significant differences in rent, food, and transportation costs.