Minimum wage
- National minimum wage regulations are the income a worker requires to meet his basic needs. The purpose of national wage is to enable a worker to afford a basic but decent living standard. National minimum wage laws have bothered low wage workers with modest benefits and modest costs. National minimum wage regulations raise the salaries of the workers with the lowest incomes. They may also lead to lower turnover, improved worker morale and modest poverty reductions.
- Enterprises may become uncompetitive, In some situation a higher minimum wage may drive up costs that cause a company to go out of business because they may not be able to afford wage costs. This could be a particular problem if the company is competing in a global market and higher wage costs make them uncompetitive in comparison with low-wage countries. Causes Unemployment, when labor markets are competitive, a minimum wage may result in unemployment as businesses would need less labour, and higher wages could allow more workers to supply their labour. Cost-push inflation, A minimum wage can lead to inflation on the cost-push. This is because businesses are facing an rise in prices that are likely to be passed on to customers. Poorest don’t benefit-A minimum wage limitation is that it doesn’t raise the incomes of the lowest income groups as poorest people need to rely on benefits and thus are not affected by minimum wages.
- Compare minimum wages offered in South east Asian region and those in Europe. What is the gap? Provide reasons why do you think such phenomenon exist.
Minimum wage for south east asia is ranged from RM335.82 to RM1,258.47 permonth, wheares minimun range of Europes is from RM1,503.35 to RM10,321.10 permonth. The gap as seen is very large, the lowest minimum wage country in Europe was RM1167.53 more than lowest minimum wage country in south east asia and the highest minimum wage country in Europe was 9062.63 more than the highest minimum wage country in south east asia. The Topic of the global minimum wage and inequalities are, unfortunately, most often exploited for political, ideological or pecuniary ends.