United States vs Timor-Leste

In the United States, the minimum wage is $7.25/hr. In Timor-Leste, it is $115/mo. 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 the United States is $6,228/mo, compared to $350/mo in Timor-Leste. In USD terms, workers in the United States earn approximately 1679% more. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between United States and Timor-Leste 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 United States and Timor-Leste 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 the United States' 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.