Top 15 Countries with the Lowest Labor Costs in the World

Kyrgyzstan is a landlocked country in Central Asia that you should consider visiting someday. Known for its vast mountains, which cover 94% of its land, and snow-capped peaks that account for 30% of the country, Kyrgyzstan is truly a stunning place. With over 40,000 rivers, nearly 8,000 glaciers, and 1,923 lakes scattered across the country, it's a natural wonder. Despite its 199,951 square kilometers of land area, it has a relatively low population of about 6 million people.

However, Kyrgyzstan can be a challenging environment for entrepreneurs whose businesses are not adaptable to its rugged terrain, cold climate, and language barriers. That said, most other aspects of the country are outstanding, with one of its greatest advantages being the low labor costs. Businesses can save significantly here with a minimum wage of just $0.09 per hour. For administrative jobs, the minimum monthly pay is $14, equating to just $181 annually. Although Kyrgyzstan’s landlocked status makes it a challenging market for business, the affordable labor makes it an attractive option for investors.

Bangladesh is an incredible country with a history marked by devastating cyclones, floods, some of the worst traffic congestion in its cities, and corruption. Despite these challenges, you'll find few places that compare to the warmth and hospitality of the people in Bangladesh. The country boasts a thriving textile industry, fertile lands that sustain a massive farming population, and a growing service sector, especially in banking, which has turned Bangladesh into an economic powerhouse in South Asia. Ranked just behind India, Bangladesh has the second-largest foreign exchange reserves in South Asia and is one of the most affordable places to live in the world.

What makes Bangladesh a prime destination for businesses is its incredibly low labor costs. The minimum wage across most industries is just $0.09 per hour. Workers in lower-paying sectors, where specific wage guidelines are not set, receive as little as $19 a month, although workers in the textile industry earn around $68 a month. The National Minimum Wage Committee reviews these figures every five years.

Tanzania is one of the must-visit countries in Africa if you want to experience the best of African wildlife tourism. It is home to the highest peak in Africa, Mount Kilimanjaro, and shares Lake Victoria, the largest freshwater lake in Africa, with Kenya and Uganda. Tanzania is also famous for the spectacular wildebeest migration, a natural wonder that it shares with Kenya. As a former British colony, most Tanzanians speak English fluently.

Tanzania is a developing nation with infrastructure that may not meet the standards found in more developed countries, which might make it less ideal for business ventures. However, its low cost of living, despite significant poverty among its population, makes it an attractive location. The minimum wage in Tanzania is $0.10 per hour, and employers can expect to pay as little as $20 per month for workers at the lowest income levels. Tanzania is one of the countries with the lowest labor costs globally.

The Gambia is one of the smallest countries in Africa, bordered only by Senegal, yet it remains one of the most controversial nations, especially concerning its leadership. The country's former president once claimed to have discovered a cure for AIDS, believed to come from boiling herbs. Although the constitution allows for religious freedom, the president declared The Gambia to be an Islamic state in December 2015. A unique fact about this country is that the weekend begins on Thursday and ends on Saturday.

The Gambia is a small African nation with a modest economy that is struggling to fight poverty. The country's economy is mainly reliant on agriculture and tourism. However, these sectors do not provide a significantly improved standard of living for the people, nor do they offer better wages. About one-third of the population lives below the poverty line, a concerning statistic for any nation. The economy is largely based on agriculture, tourism, and fishing, industries that employ most of the population. The minimum wage here is $0.13 per hour, or $317 per year.

Venezuela

Venezuela's vast oil reserves are one of the reasons why people here can fill up their tanks for pocket change. However, hyperinflation is the country's greatest enemy, leading to widespread poverty. Despite its vast oil wealth, Venezuela is struggling. The minimum wage here is only $0.17 per hour, which amounts to a mere $361 annually.

Guinea-Bissau is generally hot and humid, experiencing a tropical climate with the rainy season running from June to November. People are drawn to this country for its stunning white sandy beaches and flat, low-lying terrain. The capital city is Bissau, which shares its name with the country to avoid confusion with another African nation, Guinea.

However, the beautiful beaches are not the only attraction in Guinea-Bissau, as many entrepreneurs are tempted by the country's low labor costs. Guinea-Bissau ranks among the lowest in the world for GDP per capita, with two-thirds of the population living in alarming poverty. Agriculture drives the country's economy, with fish, peanuts, and cashews making up a significant portion of its exports. Poverty contributes to the very low minimum wage in Guinea-Bissau, which is just $0.17 an hour, or around $30 per month along with a bag of rice.

Malawi may not be a top tourist destination in the region, but it certainly stands out as a prime spot for both tourists and investors. It boasts some of the lowest labor costs in the world. The pleasant climate and friendly locals encourage visitors to stay longer. Lake Malawi, one of the largest lakes in Africa and the third largest in the world, creates the illusion that this landlocked country has access to the Indian Ocean.

Like many developing nations, Malawi relies heavily on foreign aid and support from institutions like the IMF (International Monetary Fund) and other countries. The nation's economic situation is largely dependent on international grants and loans. In terms of investment, Malawi is considered one of the safest investment destinations in Africa. The minimum wage here is $0.17 per hour, which translates to an annual minimum wage of $412. While this may not be sufficient for workers in Malawi, the cost of living is significantly lower compared to developed nations.

If you happen to glance at the flag of Liberia, you may think you’re looking at the American flag, just with fewer stars. This similarity is due to the country’s founding in 1822, intended as a home for African Americans and freed slaves from the United States, offering them a chance for a better life away from the racial discrimination they faced. Liberia is the oldest modern republic in Africa and the only one that did not fight for independence through warfare.

Liberia is often considered the U.S.'s closest ally in Africa and has one of the fastest-growing economies in the world, despite facing corruption and low business costs. The lowest-paid workers in Liberia earn just $0.17 per hour, equating to $435 annually. This is significantly lower compared to the U.S. and many other countries around the world.

The Democratic Republic of the Congo is one of the wealthiest countries in the world, yet its people rarely benefit from this immense wealth. With more natural resources than most countries combined, Congo's potential is hindered by poor infrastructure, political instability, widespread corruption, and a colonial history that has prevented substantial development. Kinshasa, the nation's capital, is the only major city that isn't centered around mining, and much of the country remains underdeveloped.

Congo takes you to the wilds of Africa, a nation brimming with natural wealth, perhaps the richest on the planet in terms of untapped resources. However, the people of Congo do not get to enjoy the riches of their beautiful land. While it may not seem like an ideal place for investment, entrepreneurs in the mining sector can still profit despite the country's challenges. The minimum wage here is just $0.20 per hour, translating to an average annual wage of $472, which would be excellent for mining companies looking to make substantial profits.

If you assume that Tajikistan is a country that belongs in the same region as Afghanistan, Uzbekistan, Kyrgyzstan, and Pakistan, you're correct. The reason for this is that all of these countries share similar-sounding names, which derive from the Persian suffix "stan," meaning "land" or "country" in English. Thus, Tajikistan literally means "the land of the Tajiks," and the same logic applies to its neighboring countries. The stunning beauty, historic cities, rich culture, and luxurious accommodations make this not only a fantastic destination for tourists but also a good place for business.

However, despite the appealing landscapes, historical sites, and interesting culture, Tajikistan is not an ideal place to earn money with low-wage labor. The country has very cheap labor, with wages starting at just $0.23 per hour, amounting to around $487 annually. This low pay is one of the reasons many Tajik citizens have migrated to Russia in search of better-paying jobs, sending money back home, which for years has represented nearly half of the country's GDP.

Football fans know that African teams in the FIFA World Cup are rarely expected to reach beyond the quarter-finals, a trend that has held since these countries joined the tournament. However, Ghana has always been one of the standout teams, boasting one of the best football programs with impressive achievements both in Africa and globally. The country is rich in natural resources such as precious metals, hydrocarbons, and industrial minerals, which have helped it become one of the major players in Africa.

Ghana is a country with a growing economy and is striving to join the ranks of developed nations in the near future. The service sector accounts for 50% of the GDP, manufacturing makes up 24%, mining contributes 5%, and taxes cover the remainder. The lowest wages you'll find here are incredibly affordable, starting at $0.23 per hour, which amounts to just $488 a year.

Many people are familiar with the animated movie Madagascar, its sequels, and spin-offs, often assuming it to be a fictional place. However, Madagascar is a real island nation in Africa, known for its unique biodiversity. The island is believed to have separated from both Africa and India millions of years ago, remaining isolated for 70 million years. This isolation is one reason why 90% of its wildlife is found nowhere else on Earth. As expected, Madagascar is a popular tourist destination and offers a lot to discover.

Madagascar boasts a mix of African, Asian, Indian, European, and Chinese influences, all reflecting the country's rich history and cultural diversity. As one of the world's top suppliers of cloves and vanilla, Madagascar is a prime tourist and business destination. With a minimum wage of just $0.23 per hour, or about $490 per year, the country offers a favorable environment for businesses to thrive.

Uganda is a landlocked country in East-Central Africa, ranking among the world's poorest nations. A significant portion of its population consists of farmers who rely on small plots of land for subsistence agriculture, growing crops like coffee, cotton, tea, and tobacco. The country's poor economic performance is largely due to inefficient infrastructure, limited job opportunities, and an underdeveloped service sector. However, Uganda is rich in natural resources, including gold, crude oil, and fertile agricultural land. Over two-thirds of the workforce is employed in sectors related to these resources.

Over 70% of Uganda's workforce is engaged in agriculture, with only 30% working in public or government sectors. The government has introduced several training and skill development programs to improve employment prospects and the country's economic conditions. The labor force in Uganda grows by more than 4% annually. With few job opportunities, a large portion of the population turns to agriculture or informal sectors with low productivity. Major industries in Uganda include steel production, cement, cotton, tobacco, sugar, and breweries.

Georgia is strategically located at the crossroads of Europe and Asia. The country is known for its stunning Black Sea beaches and the towering Caucasus Mountains. However, it is Georgia’s historical position along the ancient Silk Road trade route that has made it a sought-after destination for neighboring empires for centuries. With a small land area of just 69,700 square kilometers, Georgia lies at the intersection of Europe and Asia, and while its population is modest, its economic conditions are challenging for workers, with a minimum wage of only $96 per year.

Despite its small size, Georgia has a diverse landscape, including mountainous terrain and lowlands near the Black Sea. Most of the population lives in the central valley around Tbilisi, the capital, and along the coast. The Svaneti region in the northwest is the most densely populated area in the Caucasus Mountains.

This beautiful island attracts nearly 2 million tourists annually, who come to explore its breathtaking landscapes and colonial architecture. Cuba also has one of the lowest labor wages in the world, with the minimum wage dropping to just $0.05 per hour. While this may seem exceedingly low by Western standards, it’s important to consider the actual cost of living in Cuba. The Cuban people receive government-subsidized food, and they can also purchase additional essential food items at cost from state-run stores.

Utility bills in Cuba are highly subsidized, with monthly charges for electricity, water, and gas totaling only around $2—far less than in Western countries. Health insurance is provided for free by the government, and gasoline is sold at subsidized prices. Education is also free, including for adults who wish to return to school for a few classes. Despite its reputation, Cuba is not as poor as many believe. It boasts large, developing cities, and the people are generally satisfied with their lives and the economic system.