"Bhutan’s minimum wage trails far behind global benchmarks", 24 April 2025

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Bhutan’s national minimum wage is over 50 times lower than that of Australia, raising questions about wage-setting frameworks and economic equity. As of July 2024, Australia’s Fair Work Commission set the national minimum monthly wage at approximately Nu 351,000. In contrast, Bhutan’s stands at Nu 6,450 per month. The National Wage Rate is the minimum wage at the national level below which a worker cannot be paid but does not restrict employers from paying over and above. The Fair Work Commission, an independent body under the Australian government, reviews wage levels annually through extensive consultations with workers, businesses, and economic experts. It bases decisions on factors such as inflation, cost of living, employment trends, and overall economic conditions.

..Bhutan’s national minimum wage is Nu 215 per day. However, most unskilled workers in both urban and rural areas typically earn around Nu 1,000 per day, more than double the official minimum. Despite this, the national wage rate still holds legal significance—it is used to calculate fines, penalties, and child alimony under Bhutanese law. Following an official visit to Australia, Dr Tshering Cigay reflected on the country’s wage-setting model in a personal blog. He highlighted Australia’s transparent framework, effective industrial relations system, and strong social protections as key components in maintaining high wages without undermining business growth. ..As of 2025, an estimated 64,000 Bhutanese have migrated to Australia, drawn by better wages, education, and economic opportunities. The contrast in wage-setting models offers valuable lessons for Bhutan as it grapples with inflation, labour rights, and economic development.