Timor-Leste vs United States

In Timor-Leste, the minimum wage is $115/mo. In the United States, it is $7.25/hr. Timor-Leste has the higher rate by 1486% 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 the United States may retain a larger share of their earnings if prices there are lower.

The average gross salary in Timor-Leste is $350/mo, compared to $6,228/mo in the United States. In USD terms, workers in Timor-Leste earn approximately 1679% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Timor-Leste and United States is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in the United States earn more in nominal terms, though how far that income stretches depends on local prices in Timor-Leste.

Both Timor-Leste and United States mandate a similar standard work week of 40 hours. When work hours are equal, the country with the higher minimum wage delivers proportionally higher weekly earnings. Standard work week rules set the baseline; actual hours worked often differ based on industry norms and individual employment contracts.

While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. United States has the higher GDP per capita at $85,810, which is 19.4x that of Timor-Leste at $4,423. From Timor-Leste's perspective, this means goods and services are priced at a lower 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.