With over 90% of countries having some form of legislation regarding minimum wage, it is something we all now expect, as it allows us to afford the basics in order to live relatively comfortably.
Is having a minimum wage something we should all be entitled to or is it something we should be grateful for? Should there be a national or regional minimum wage?
Theses are questions that have been asked and answered and will continue to be asked as our standard of living continues to increase, which increases our expectations on what we consider to be a need rather than a want.
Today, using some form of transportation to get to work is a basic requirement. We have buses and trains that can take us to our destinations. A couple of centuries ago, walking was the most common method to get to your destination and any form of transportation was used by those who could afford it, i.e. those who were ‘well off’.
What is a minimum wage
A minimum wage is the lowest pay permitted by law or an agreement payable for the performance of a job usually on an hourly basis.
Why have a minimum wage
There are some who believe having a minimum wage is detrimental to business, as it increases the cost of doing business and reduces profit margin.
On the other hand, there are those who believe we should all have a minimum pay level that reduces the level of poverty in society, makes businesses operate more efficiently and increases the standard of living for all.
It is safe to say that roles that pay minimum wage are those that do not require a high level of skill to perform the job, such as waiting tables, being a cashier at a supermarket or working in a retail store on the shop floor. These are the type of roles people can be trained on over a few days, some even hours, making it much easier for employers to constantly have an attitude of do as I say or I’ll fire you.
Calculating minimum wage
There are many factors that go into calculating what the minimum wage should be, such as inflation rates, gross domestic product, number of jobs available, unemployment rate, number of skilled workers needed and location
The amount earned should cover the 3 basic needs of food, shelter and clothing. It is not going to be enough for buying non essential purchases like holidays, gym memberships, pills for reducing body fat, have a look at fat burner pills reviews or even meals out at a nice restaurant.
Location is factored into minimum wage because there are just some places that are more expensive to live than others. Take London, Sydney and New York as examples. The cost of living in these cities is higher than if you lived in Lincoln, Wagga Wagga and Dallas. Thus, the minimum wage is adjusted to factor this into the calculation.
Consequence of not paying minimum wage
For those employers who do not pay the minimum wage, they face heavy penalties. There are financial penalties and in certain cases bosses can be sentenced to jail for not adhering to legislation.