What Is Minimum Wage?

Minimum wage can be defined as the minimum rate a worker can be paid legally as set by law making authorities. Each country makes its own minimum wage policies based on the labour market characteristics in the country and also taking into considerations the cost of living for the people. It is a crime to pay a worker wages lower than the minimum wages fixed by the Government.

New Zealand is credited with having enacted the first minimum wage laws among the countries in the world in the year 1894. In the UK, the minimum wage laws were passed only in the year 1999, whereas in the US it was passed in 1938.

The intention behind passing of minimum wage laws is to reduce exploitation, enable minimum standard of living and also avoid negative effects on employment.

The minimum wage for adults in the UK as per law is �5.05 per hour.