Minimum wage law
Encyclopedia
Minimum wage law is the body of law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...

 which prohibits employers from hiring employees or workers for less than a given hourly, daily or monthly minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...

. More than 90% of all countries have some kind of minimum wage legislation.

Until recently, minimum wage laws were usually very tightly focused. In the U.S. and Great Britain, for example, they applied only to women and children. Only after the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

 did many industrialized economies extend them to the general work force. Even then, the laws were often specific to certain industries. In France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, for example, they were extensions of existing trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

 legislation. In the U.S., industry specific wage restrictions were held to be unconstitutional. The country's Fair Labor Standards Act of 1938 established a uniform national minimum wage for nonfarm, nonsupervisory workers. Coverage was later extended to most of the labor force.

The first moves to legislate wages did not set minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...

s, rather the laws created arbitration boards and councils to resolve labour conflicts before the recourse to strikes.
  • In 1896, New Zealand established such arbitration boards with the Industrial Conciliation and Arbitration Act
  • In 1899, the colony of Victoria
    Victoria (Australia)
    Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

    , Australia established similar boards
  • In 1907, the Harvester decision
    Harvester Judgment
    The Harvester Judgment was a benchmark legal case for ensuring workers in Australia were paid a fair basic wage. The case had national ramifications and was of international significance....

     was handed down in Australia. It established a 'living wage' for a man, his wife and two children to "live in frugal comfort"
  • In 1909, the Trade Boards Act was enacted in the United Kingdom, establishing four such boards
  • In 1912, the state of Massachusetts
    Massachusetts
    The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

    , United States, set minimum wages for women and children
  • In the United States
    United States
    The United States of America is a federal constitutional republic comprising fifty states and a federal district...

    , statutory minimum wages were first introduced nationally in 1938
  • In the 1960s, minimum wage laws were introduced into Latin America
    Latin America
    Latin America is a region of the Americas where Romance languages  – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...

     as part of the Alliance for Progress
    Alliance for Progress
    The Alliance for Progress initiated by U.S. President John F. Kennedy in 1961 aimed to establish economic cooperation between the U.S. and South America.-Origin and goals:...

    ; however these minimum wages were, and are, low

Australia

  • In 1896 in Victoria
    Victoria (Australia)
    Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

    , Australia
    Australia
    Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

    , an amendment to the Factories Act provided for the creation of a wages board. The wages board did not set a universal minimum wage; rather it set basic wages for 6 industries that were considered to pay low wages. First enacted as a four year experiment, the wages board was renewed in 1900 and made permanent in 1904; by that time it covered 150 different industries. By 1902, other Australian states, such as New South Wales
    New South Wales
    New South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...

     and Western Australia
    Western Australia
    Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...

    , had also formed wages boards.
  • The notion of a "basic wage" was established in 1907 with the Harvester Judgment
    Harvester Judgment
    The Harvester Judgment was a benchmark legal case for ensuring workers in Australia were paid a fair basic wage. The case had national ramifications and was of international significance....

    .
  • A 2005 study found that the Australian federal minimum wage was 58% of the median wage, compared to 45% in the UK
    United Kingdom
    The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

     and 34% in the U.S.
    United States
    The United States of America is a federal constitutional republic comprising fifty states and a federal district...

     The typical minimum wage worker is in a middle-income household.
  • In Australia
    Australia
    Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

    , on 14 December 2005, the Australian Fair Pay Commission
    Australian Fair Pay Commission
    The Australian Fair Pay Commission was an Australian legislative body created under the Howard Government's "WorkChoices" industrial relations law in 2006 to set the minimum rate of pay for workers...

     was established under the Workplace Relations Amendment (WorkChoices
    WorkChoices
    The Workplace Relations Act 1996, as amended by the Workplace Relations Amendment Act 2005, popularly known as Work Choices, was a Legislative Act of the Australian Parliament that came into effect in March 2006 which involved many controversial amendments to the Workplace Relations Act 1996, the...

    ) Act 2005. It is the responsibility of the commission to adjust the standard federal minimum wage, replacing the role of the Australian Industrial Relations Commission that took submissions from a variety of sources to determine appropriate minimum wages. The Australian Fair Pay Commission was replaced by Fair Work Australia
    Fair Work Australia
    Fair Work Australia is the Australian industrial relations institution created by the Federal ALP Government's Fair Work Act 2009.. It commenced operation on 1 July 2009.-Functions:...

     in 2010.
  • From 1 October 2007, the Australia standard Federal Minimum Wage is $13.74 per hour or $522.12 per week.
  • From 1 October 2008, the Australia standard Federal Minimum Wage is $14.31 per hour or $543.78 per week.
  • In 2009, the Federal Minimum Wage was not changed.
  • In 2010, the Federal Minimum Wage was raised to $15 per hour or $569.90 per week
  • As of July 1, 2011, The Federal minimum wage is $15.51 per hour or $589.30 per week (38 hours)

Brazil

The Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

ian national minimum wage is adjusted annually. The minimum wage in 2009 was R$
Brazilian real
The real is the present-day currency of Brazil. Its sign is R$ and its ISO code is BRL. It is subdivided into 100 centavos ....

 465 per month (which corresponds to R$ 15.55 per day and R$ 2.11 per hour).

2010= Brazilian minimum wage increased to R$ 545 per month (which corresponds to R$18.7 per day and R$2.48 per hour).
Brazilian states can set higher minimum wages, which may vary in different economic sectors.

In Brazil each increase the minimum wage results in a significant burden on the federal budget, because the minimum wage is tied to social security
Social security
Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...

 benefits and other government programs and salaries.

Canada

Under the Canadian Constitution
Constitution of Canada
The Constitution of Canada is the supreme law in Canada; the country's constitution is an amalgamation of codified acts and uncodified traditions and conventions. It outlines Canada's system of government, as well as the civil rights of all Canadian citizens and those in Canada...

's federal-provincial division of powers
Canadian federalism
Canada is a federation with two distinct jurisdictions of political authority: the country-wide federal government and the ten regionally-based provincial governments. It also has three territorial governments in the far north, though these are subject to the federal government...

, the responsibility for enacting and enforcing labour laws rests with the ten provinces
Provinces and territories of Canada
The provinces and territories of Canada combine to make up the world's second-largest country by area. There are ten provinces and three territories...

; the three territories
Provinces and territories of Canada
The provinces and territories of Canada combine to make up the world's second-largest country by area. There are ten provinces and three territories...

 also were granted this power by virtue of federal legislation. This means that each province and territory has its own minimum wage. The lowest general minimum wage in force as of Nov 1, 2011 is that of British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...

 (C$
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...

9.50 an hour), the highest is that of Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

 (C$
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...

10.25 an hour). Some provinces allow lower wages to be paid to liquor servers and other tip earners, and/or to inexperienced employees.

The federal government
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...

 could theoretically set its own minimum wage rates for workers in federal jurisdiction industries (interprovincial railways, for example). As of 2006 however, the federal minimum wage is defined to be the general adult minimum wage rate of the province or territory where the work is performed. This means, for example, that an interprovincial railway company could not legally pay a worker in British Columbia less than C$
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...

9.5 an hour regardless of the worker's experience.

People's Republic of China

The Ministry of Human Resources and Social Security
Ministry of Human Resources and Social Security of the People's Republic of China
Ministry of Human Resources and Social Security of the People's Republic of China is a ministry under the State Council which is responsible for national labor polices, standards, regulations and managing the national social security. This includes labor force management, labor relationship...

 set the People's Republic of China's first minimum wage law on 1 March 2004. The Regulations on Enterprises Minimum Wage was made to "ensure the basic needs of the worker and his family, to help improve workers' performance and to promote fair competition between enterprises." One monthly minimum wage was set for full-time workers, and one hourly minimum wage for part-time workers. Provinces
Province (China)
A province, in the context of Chinese government, is a translation of sheng formally provincial level divisions, which is an administrative division. Provinces, municipalities, autonomous regions, and the special administrative regions, make up the four types of province of administrative division...

, municipalities
Direct-controlled municipality
A direct-controlled municipality is the highest level classification for cities used by unitary state, with status equal to that of the provinces in the respective countries...

, and utonomous areas of China|autonomouf the latest minimum monthly wages for various provinces or municipalities in China.

European Union

In the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 18 out of 27 member states currently have national minimum wages. Many countries, such as Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

, and Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...

 have no minimum wage laws but rely on employer groups and trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

s to set minimum earnings through collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...

.

France

France's national minimum wage (SMIC - salaire minimum de croissance) as of 1 January 2010 is
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

8.86 per hour, representing an increase of 0.5% over the previous rate. A previous increase of 1.3% as from 1 July 2009, brought the hourly rate to
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

8.82, up from July 2008, when it was set at
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

8.71 per hour. In July 2006, the minimum wage in France was set at
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

8.27 (~US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

11.98) per hour. In 2004, 15% of the working population received the minimum wage. The minimum wage in France is updated every year in January by the government. By law, the increase cannot be lower than the inflation for the current year. In the recent years the increase was up to two times higher than the inflation (around 5% raise with an inflation around 2%).

Hong Kong

The Legislative Council of Hong Kong
Legislative Council of Hong Kong
The Legislative Council is the unicameral legislature of Hong Kong.-History:The Legislative Council of Hong Kong was set up in 1843 as a colonial legislature under British rule...

 (LegCo) passed a Minimum Wage Bill in 2010, requiring the Chief Executive
Chief Executive of Hong Kong
The Chief Executive of Hong Kong is the President of the Executive Council of Hong Kong and head of the Government of the Hong Kong Special Administrative Region. The position was created to replace the Governor of Hong Kong, who was the head of the Hong Kong government during British rule...

 to propose a minimum wage. Through a Provisional Minimum Wage Commission appointed by the government, a HK$28 hourly wage floor was introduced and eventually accepted by LegCo after much debate. Prior to this, a monthly minimum wage already existed for foreign domestic helpers
Foreign domestic helpers in Hong Kong
Foreign domestic helpers in Hong Kong are foreign domestic workers and housemaids employed by Hongkongers, typically families. They make up approximately 3% of the population of Hong Kong and an overwhelming majority of them are women...

, HK$3,580/month. In some trades, such as bar-bending and bamboo scaffolding workers in the construction industry, have daily minimum wage negotiated between the trade unions and employers' organisations.

Ireland

The minimum wage was introduced in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...

 in 2000 at IR£
Irish pound
The Irish pound was the currency of Ireland until 2002. Its ISO 4217 code was IEP, and the usual notation was the prefix £...

4.40 (
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

5.59) per hour, and as of early 2011, it is €8.65 per hour. This is subject to reduction as follows:
  • 30% reduction for all employees under 18.
  • 20% reduction for employees over 18 in their first year of employment in any job since they turned 18.
  • 10% reduction for employees over 18 in their second year of employment in any job since they turned 18.


It may further be reduced by up to €7.73 a day if lodgings and/or food are provided as part of a job.

Trainees (including those over 18) are also entitled to different minimum wages, reduced as follows:
  • 25% reduction for the time during the first one-third of the course.
  • 20% reduction for the time during the second one-third of the course.
  • 10% reduction for the time during the final one-third of the course.


Ireland has the second highest minimum wage in the EU, after Luxembourg.

However, Ireland's minimum wage prior to the €1 cut in the 2011 budget, was only fifth highest of eight EU countries surveyed for the British Low-Pay Commission Report in 2010, with the UK, Netherlands, France and Belgium all listed as having higher minimum wage rates when OECD Comparative Price Levels are taken into account.

Japan

In Japan, minimum wage depends on the industry and the region. Industrial minimum wages apply for certain industries and usually set higher than the regional minimum. If regional and industrial minimum wages differ, higher of two will apply.

As of 2011, regional minimum wages range from ¥
Japanese yen
The is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. It is also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling...

645 (~US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

8.40,
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

6.10) to ¥837 (~US$10.90, €7.95) per hour for all workers.

Cost of commuting, extra pays (such as working on holidays, at night, overtime, etc.) and temporary pays (bonus, tips, etc.) must be paid exclusively and cannot be used to calculate towards minimum wage. Regional minimum hourly wages are set by the Minister of Labour
Minister of Health, Labour and Welfare (Japan)
The , or , is the Cabinet of Japan member in charge of the Ministry of Health, Labour and Welfare. As of 2 September 2011, the current minister is Yoko Komiyama.-References:...

 or the Chief of the Prefectural Labour Standards Office. Recommendations are made by the Minimum Wage Council.

New Zealand

  • New Zealand
    New Zealand
    New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

     was the first country to implement a national minimum wage, enacted by its government through the Industrial Conciliation and Arbitration Act 1894
    Industrial Conciliation and Arbitration Act 1894
    The Industrial Conciliation and Arbitration Act 1894 was a piece of industrial relations legislation passed by the Parliament of New Zealand in 1894. Enacted by the First Liberal Government of New Zealand, it was the world's first compulsory system of state arbitration...

    .
  • From 1 April 2010, the minimum wage for employees aged 16 years and over is $12.75 an hour before tax. That’s $102 for an eight hour day, or $510 for a 40 hour week.

  • From 1 April 2008, the minimum wage for employees rose to $11.25 per hour before tax. Also the youth minimum wage, for 16 and 17 year old employees was abolished (previously $9.00)
  • From 1 April 2010, the training wage rose to $10.20 per hour before tax. That’s $81.60 for an eight hour day, and $408 for a 40 hour week.
  • From 1 April 2011, the training wage rose to $10.40 per hour before tax. The minimum wage was increased to $13.00 an hour.


This is the info on the NZ wage now:
  • For employees under 16 years old, there is no minimum wage.
  • For employees between 16 and 17 years old or for employees in training, the minimum wage is $10.20 per hour.
  • The training wage applies to people doing recognised industry training involving at least 60 credits a year.
  • For employees 18 and older, the minimum wage is $13.00 per hour before tax.

Pakistan

Monthly minimum wages in Pakistan are recommended by the Federal Government under nationally-applicable Labour Policies and set by Provincial Minimum Wages Boards under the Minimum Wages Ordinance, 1961.

Pakistan's first minimum wage was introduced in 1992 when it was set at PKR
Pakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...

 1,500 (~US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 24.60) per month.

It was, subsequently, raised:

in 1996 to PKR
Pakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...

 1,650 (~US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 27.10) per month

in 1998 to PKR
Pakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...

 1,950 (~US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 32) per month

in 2006 to PKR
Pakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...

 4,000 (~US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 $66) per month

in 2007 to PKR
Pakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...

 4,600 per month

in 2008 to PKR
Pakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...

 6,000 per month

in 2010 to PKR
Pakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...

 7,000 (~US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 $82.4) per month

Romania

Two minimum wage levels are enforced in Romania. For state employees, the level is set by law at 600 RON (~US$ 200). For all other employees, the wage is set at 440RON (~US$ 145) by collective bargaining, which also stipulates multiplication indices for various levels of education. Jobs that require high-school and college qualifications are paid at least 1.5 and 2 times the minimum wage, respectively. Teachers' unions resorted to justice to claim same treatment and be paid according to collective bargaining. As of November 2007, they won three landmark cases and expect similar decisions in several dozens other courts. A single, unified level was proposed starting 1 January 2008 but it failed.

Republic of China (Taiwan)

The Republic of China (Taiwan) government does not have a set minimum wage, but a basic wage in its Labor Standards Law serves the minimum wage function. The basic wage set per month is NT$17,880, effective January 1, 2011.

United Kingdom

Municipal regulation of wage levels began in some towns in 1524.

Wages Councils
The Trade Boards Act of 1909 created four Trades Boards that set minimum wages which varied between industries for a number of sectors where "sweating" was generally regarded as a problem and where collective bargaining was not well established. This system was extended considerably after the Second World War
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

; in 1945 Trades Boards became Wages Councils, which set minimum wage standards in many sectors of the economy, including the service sector as well as manufacturing. Wages Councils were finally abolished in 1993, having fallen into decline due, in large part, to Trades Union opposition. A lower limit of pay, or "pay floor" was regarded as threatening the voluntary system of collective bargaining favoured in the UK. The government had first made a serious attempt to abolish Wages Councils in 1986, having abandoned existing legislation that tried to widen the scope of voluntary agreements to include those firms that had not taken part in negotiations, such as the Fair Wages Resolutions. These required that government contractors pay fair wages and respect the rights of their employees to be members of trades unions.

Instead the Wages Act 1986 reformed the wages councils and abolished the power to create new ones.

National Minimum Wage
A National Minimum Wage (NMW) was introduced for the first time by the Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...

 government on 1 April 1999 at the rate of £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

3.60 per hour for those workers aged 22 and over,Labour having promised to set a minimum wage in their 1997 general election
United Kingdom general election, 1997
The United Kingdom general election, 1997 was held on 1 May 1997, more than five years after the previous election on 9 April 1992, to elect 659 members to the British House of Commons. The Labour Party ended its 18 years in opposition under the leadership of Tony Blair, and won the general...

 campaign. In its election manifesto, it had claimed that every other modern industrial country had already adopted a minimum wage.

This rate was set after the Low Pay Commission (LPC), an independent body the government appointed in July 1997 to advise it on low pay, recommended the rate. The LPC's permanent status was later confirmed and it continues to make recommendations to government on the NMW, which has been uprated in October every year since 2000. The LPC board consists of nine members—three trade unionists, three employers, and three labour market relations experts. The Commission undertakes consultations each year to gather available evidence before making recommendations in its biennial review—the next such set of recommendations being due in the spring of 2007.

The current minimum wage in the UK, set in October 2010 by the new Conservative
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...

-Liberal Democrat
Liberal Democrats
The Liberal Democrats are a social liberal political party in the United Kingdom which supports constitutional and electoral reform, progressive taxation, wealth taxation, human rights laws, cultural liberalism, banking reform and civil liberties .The party was formed in 1988 by a merger of the...

 coalition
Coalition
A coalition is a pact or treaty among individuals or groups, during which they cooperate in joint action, each in their own self-interest, joining forces together for a common cause. This alliance may be temporary or a matter of convenience. A coalition thus differs from a more formal covenant...

 government, for adults aged 21 or older is £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

5.93 per hour. For workers between the ages of 18 and 20 the minimum wage is £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

4.92 per hour. The minimum hourly wage for all workers under the age of 18 (and who are, in addition, no longer of compulsory school age) is £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

3.64. There is no minimum wage for those still of compulsory school
Compulsory education
Compulsory education refers to a period of education that is required of all persons.-Antiquity to Medieval Era:Although Plato's The Republic is credited with having popularized the concept of compulsory education in Western intellectual thought, every parent in Judea since Moses's Covenant with...

 age. With effect from October 2011, the minimum wage will increase to £6.08 per hour for workers aged 21 and above, £4.98 for workers aged 18-20, £3.68 for workers aged 16-17, and £2.60 for apprentices regardless of age.

Some workers undertaking apprenticeships or accredited training may be exempted (that is, not considered eligible to receive the NMW) for a certain period of time, which varies according to their age and the length of time in employment. Other categories of worker who are exempt include au pair
Au pair
An au pair is a domestic assistant from a foreign country working for, and living as part of, a host family. Typically, au pairs take on a share of the family's responsibility for childcare as well as some housework, and receive a small monetary allowance for personal use...

s, share fishermen, clergy, those in the Armed Forces
British Armed Forces
The British Armed Forces are the armed forces of the United Kingdom of Great Britain and Northern Ireland.Also known as Her Majesty's Armed Forces and sometimes legally the Armed Forces of the Crown, the British Armed Forces encompasses three professional uniformed services, the Royal Navy, the...

, prisoners and some people working in family businesses. The rate payable under the NMW can, in all cases, also be reduced where accommodation is provided to the worker.

Unlike most other employment rights legislation in the UK, which generally rely on affected individuals raising grievances and making claims, if necessary, before tribunals
Employment tribunal
Employment Tribunals are tribunal non-departmental public bodies in England and Wales and Scotland which have statutory jurisdiction to hear many kinds of disputes between employers and employees. The most common disputes are concerned with unfair dismissal, redundancy payments and employment...

 to enforce these rights, the NMW has compliance teams, attached to Her Majesty's Revenue and Customs (HMRC) offices who will act on approaches from workers who think they are being paid less than the minimum wage by contacting and visiting their employers. Affected workers can either make a complaint directly to a national helpline or seek advice from another agencies such as their local Citizens Advice Bureau
Citizens Advice Bureau
A Citizens Advice Bureau is one of a network of independent charities throughout the UK that give free, confidential information and advice to help people with their money, legal, consumer and other problems....

 or the Scottish Low Pay Unit—this is particularly recommended if other employment rights issues are involved, as the HMRC can only deal with minimum wage enquiries.

United States

In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, statutory minimum wages were first introduced nationally in 1938.

The Fair Minimum Wage Act of 2007
Fair Minimum Wage Act of 2007
The Fair Minimum Wage Act of 2007 is a US Act of Congress that amended the Fair Labor Standards Act of 1938 to gradually raise the federal minimum wage from $5.15 per hour to $7.25 per hour. It was signed into law on May 25, 2007 as part of the U.S. Troop Readiness, Veterans' Care, Katrina...

 is the current federal minimum wage law of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. It was signed into law on April 25, 2009 as a rider
Rider (legislation)
In legislative procedure, a rider is an additional provision added to a bill or other measure under the consideration by a legislature, having little connection with the subject matter of the bill. Riders are usually created as a tactic to pass a controversial provision that would not pass as its...

 to the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007. The act implemented three increases to the federal minimum wage—from $5.15 an hour to $5.85 per hour on July 24, 2007, to $6.55 per hour on July 24, 2008, and finally to $7.25 an hour on July 24, 2009. The bill also contains almost $5 billion in tax cuts for small businesses.

Nearly all states within the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 have minimum wage laws; Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...

, Louisiana
Louisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...

, Mississippi
Mississippi
Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...

, South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...

, and Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...

 are the only states yet to set a minimum wage law.

As of July 24, 2009, U.S. federal law requires a minimum wage of at least $7.25 per hour. Washington has the highest minimum wage in the U.S. of $9.04 per hour (as of January 1, 2012). Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...

 has the second highest minimum wage rate of $8.40 per hour. The next highest state wage rates are in Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...

, Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...

, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...

, and the District of Columbia at $8.25 per hour, and then Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...

 at $8.06 per hour.

Around June 9th, 2011, the New Hampshire
New Hampshire
New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...

 State Legislater repealed the state's minimum wage law that was already on par with the federal minimum wage law. The repeal was vetoed by Gov. Lynch and then overridden by Speaker William O'Brian in a surprise vote on the house floor and by the State Senate.



International Labour Organization

International Labour Organization
International Labour Organization
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues pertaining to international labour standards. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the...

 insists "minimum wage fixing" for rights of labours and has adopted Minimum Wage-Fixing Machinery Convention, 1928
Minimum Wage-Fixing Machinery Convention, 1928
Minimum Wage-Fixing Machinery Convention, 1928 is an International Labour Organization Convention.It was established in 1928:Having decided upon the adoption of certain proposals with regard to minimum wage-fixing machinery,......

, Minimum Wage Fixing Machinery (Agriculture) Convention, 1951
Minimum Wage Fixing Machinery (Agriculture) Convention, 1951
Minimum Wage Fixing Machinery Convention, 1951 is an International Labour Organization Convention.It was established in 1951, with the preamble stating:...

 and Minimum Wage Fixing Convention, 1970
Minimum Wage Fixing Convention, 1970
Minimum Wage Fixing Convention, 1970 is an International Labour Organization Convention.It was established in 1970, with the preamble stating:...

 following up these former Conventions.

See also

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