What is Minimum Wage?

‘Minimum wage’ is the legally mandated minimum hourly wage that employers are required to pay their employees for their work. It serves as a baseline wage to ensure that workers are compensated at a level that meets their basic needs, such as food, housing, and other essentials. The specific minimum wage amount varies from country to country and sometimes even within regions or states of a country.

Governments typically set and periodically adjust the minimum wage through legislation or regulation to keep pace with changes in the cost of living and to help mitigate poverty and income inequality. Minimum wage laws are designed to protect the rights and economic well-being of low-wage workers by establishing a floor for wages and ensuring that they receive fair compensation for their labour.

It’s important to note that the actual minimum wage can differ significantly from place to place and can change over time as governments reassess and update their policies. Additionally, some regions or industries may have higher minimum wages than the national or state minimums to account for variations in the cost of living.