Minimum Wage Policy Guide Determines Minimum Wage Budget Plan

(Last Updated On: August 9, 2019)

The minimum wage policy has been identified as one of the key goals of ensuring a fair wage for low-wage workers in the country, reducing inequality in the labor standard labor 2030 sustainable development agenda and promoting specific work for all women and men. The minimum wage is the bottom line of legally-mandated hourly wages, under which exempt workers cannot live modestly.

The federal minimum wage at the present time is currently set $ 7.25 per hour. In states and municipalities where their own minimum wage law is implemented, employers must pay at least the state or local minimum. As of December 19, 2018, the minimum wage is above the federal minimum wage in 29 states and the District of Columbia. International data on the one hand shows a negative correlation between union density and labor relations quality and minimum wage state control.

Who is covered by the federal minimum wage?

Most workers employed in the United States are subject to the minimum wage. Minimum wages of employees of any business or enterprise with a total annual sales or business of at least $ 500,000 dollars and employees of any business participating in interstate trade. Also, employees of the federal, state and local government agencies, hospitals and schools, and most of the housemates, must. Some exceptions apply to young workers, full-time students, and students, and workers with disabilities. Further, the minimum base wage for hourly workers advised is 2.13. If the base wage does not add a regular minimum wage on the basis of a worker’s given age-period plus, then the employer must pay the difference; However, these requirements can be difficult to implement.

Who is paid the minimum wage?

In Labor, according to the Bureau of Labor Statistics (BLS), 1.8 million workers earned wages below or below the federal minimum. About half of these workers are over 25 years of age, and a third have worked full time. Women were more likely to have minimum wage jobs than men, and blacks were more likely to have minimum wage jobs than other races and ethnic groups. About 70 percent of those living below or below the minimum wage were in the service industry and about 16 percent were in sales or administrative support.

Minimum wage history

The minimum wage policy has been identified as one of the key goals of ensuring a fair wage for low-wage workers in the country, reducing labor inequality. The first United States minimum wage was established under the Fair Labor Standards Act of 1938. Since then, Congress has increased the minimum wage by 22 times and changed who is under it.

Since the minimum wage is not automatically adjusted for inflation, its real (inflation-adjusted) standardization growth falls in the years – as it did in the 1980s, when the real value of the wage floor dropped 30 percent in the 1990s (20 percent reduction). And after 2009 (14 percent and falling). The minimum wage is the national decrease in the purchasing power of the living standard of the minimum wage workers. The minimum wage for workers and non-management service workers in the minimum collar industry is about 30 percent of the average wage.

The economic impact of raising the minimum wage

According to the general supply and demand theory, employers can respond to the minimum wage increase:

  • Recruit fewer workers,
  • Reducing the number of hours their employees work,
  • Higher customers in the form of higher prices and / or
  • Absorb some of the costs of higher wages in the form of lower profits.

Beyond the general supply-and-demand theory, raising the minimum wage can encourage businesses to operate more efficiently and to work harder. Employers can look for ways to increase productivity, such as setting higher performance standards for their employees or investing more in employee training. A higher wage can motivate workers to work harder because they feel that they are being paid a fair salary and lost in dismissal. This combination of skills improvements for both the employer and the employee can reduce job turnover, reduce the cost of hiring employers, and lead to employment gains.

Theoretical solos do not tell us how large any of these effects are and the direction is unclear. Indeed, empirical studies show that the effect of increasing minimum wage on employment has historically been somewhat negative, trivial, or sometimes even positive.

The Congressional Budget Office (CBO) estimates that low-wage workers, as a group, earn more from wages than to reduce employment. The same can be true for most individuals, if the employment decline spreads widely over the low-wage population.

Value of minimum wages
Value of minimum wages: The minimum wage policy has been identified as one of the key goals of ensuring a fair wage for low-wage workers in the country, reducing labor inequality. (image source)

Initiatives for increasing federal minimum wage

The minimum wage policy has been identified as one of the key goals of ensuring a fair wage for low-wage workers in the country, reducing labor inequality. Previous government of the US proposed raising the minimum wage to 28, and since then has taken action in six states and Washington, DC. Congressional Democrats have also introduced bills to increase that. These proposals will raise wages in a number of increments and index them in inflation.

A bill by Senators Bernie Sanders (I-VT) and Representative Bobby Scott (D-VA) would raise the minimum wage over several years, but would generally tie it to wages (median) instead of inflation. The bill would raise the minimum wage for people with disabilities and gradually reduce the wages of subordinate workers for consulting staff.

Proposals like this will eliminate the need for periodic erosion of the minimum wage price and periodic, potentially controversial legal disputes to recover it. These national debates have been a feature of the minimum wage since the beginning. The Trump administration has no official position on the minimum wage, but President Trump’s head of the National Economic Council, Larry Kudlow, has said that the federal minimum wage is a “terrible idea” and he will not personally work with Congress. Democrats to pick it up.

The 2030 Sustainable Development Agenda, adopted by the United Nations in 2015, has been identified as the main goal of reducing inequality and promoting specific work for all women and men.

17 Sustainable Development Goals (SDGs) seek to balance the three dimensions of sustainable development: economically, socially and environmentally.

Goal 8 calls for “sustainable, inclusive and sustainable economic growth, full and productive employment, and good work for all” and highlights the importance of achieving equal pay for equal value work and protecting labor rights.

The goal is to “reduce inequality within and between countries” and to achieve greater equality, with an emphasis on raising incomes, eliminating inequalities, as well as policies, especially revenue, wage and social protection policies, below the population of 10.

Well-planned and effective minimum wages can contribute to these objectives. They can help ensure “a fair and equitable share of the fruits of progress for all,” 1 and “a minimum living wage for all employed and this national security is required”.

On the contrary, well-designed minimum wages can jeopardize the well-being of workers, reduce effective implementation, and encourage informality.

Current policy guidelines are based on the current ILO labor standards, the latest review of national laws and practices adopted in the ILO, 3 as well as years of experience involved in the context of ILO collaboration with governments and social partners worldwide.

The guide reflects the diversity of international practices and the different choices that can be made, depending on national preferences and the situation of the country. It does not try to promote a single model in all countries. It, however, emphasizes the key principles of good practice and provides examples of the benefits and effectiveness of various policy options.

Finally, the guide emphasizes another key SDG policy – partnerships.

The minimum wage policy has been identified as one of the key goals of ensuring a fair wage for low-wage workers in the country, reducing labor inequality. When it comes to setting the minimum wage, only social negotiation and collective bargaining help balance the balance between the legitimate needs of both workers and enterprises.

Related: How to impress employers pay higher cyber security salary

Add a Comment

Your email address will not be published. Required fields are marked *