Minimum Wage

Posted in Human Resource Terms, Total Reads: 879

Definition: Minimum Wage

Minimum wage is the lowest salary that employers may pay to their employees legally. Minimum wage is a method from government to impose price control. Minimum wage set a threshold indicating what minimum price must be paid for certain goods or services.

Governments set price controls to make sure that individuals receive a fair wage at their respective jobs. Pre-requisite for minimum wage positions are usually basic, nontechnical skills. Companies take advantage of minimum wage by using more part-time workers and avoiding overtime pay.

Central governments use minimum wage laws to ensure a basic quality of life among the citizens of the country. These laws are aimed at improving an individual’s position in the economy and achieving a level of economic equality. Governments can use minimum wage laws to force companies to pay all individuals equally, regardless of race, religion, sex or on any other basis.

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