How Are Wages Calculated?


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Shalin Choksi Profile
Shalin Choksi answered
Wages are calculated according to the supply and demand factor of a particular country. If there is more supply and less demand, the wages will be less but if there is more demand and less supply, the company will pay more to the workers to work harder. The reason why the wages will be more is because the company will be making huge profits due to the high demand and the money will eventually reach the workers. This method is practiced in most of the countries. There are many other ways of calculating wages which also depends upon the financial condition of a particular country of company.

There is also something known as a minimum wage, which means that the company has to pay its workers the wage that is been fixed by the government of that country. No company can pay its workers an amount of money which is less than the minimum wage. It is the right of every worker to receive the minimum wage amount.

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