Essay on National Minimum Wages
Added on 2020-02-03
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Research for Practice (FDN0009)EssayShould the National Minimum Wage be abolished?Student Name: Romina IonescuStudent Id:LON160114008Date:27th June 20161
ESSAY Should the national minimum wage be abolished?The concept of minimum wage has emerged under the policy that is regarded asNational Minimum Wage. Under the payment is made on pay per hours.Nearly all thepersonnel are part of this. The National Living Wage is greater than National MinimumWage. The workers get this in case they are over 25. It does not matter how smaller anemployer is but they are required to offered with correct as well as least amount in formof wages (Stewart, 2004). In the present essay the discussion is being made onwhether national minimum wage rate needs to be abolished. The present essay wouldinclude arguments in both favor and against of the subject matter under investigation. Wage is considered as the factor of production which is being determined by themeans of interaction among the market force of demand as well as supply. The termMinimum wage can be defined as the minimum compensation amount that is requiredto be attained by an personnel in order to perform labor. Minimum wages is beingestablished through contract or legislation by the regulatory authority (Metcalf, 2008).This is because it is not legal to make payment to an employee lesser than the minimalwage. The aim of the nominal wage rate attempts at offering protection of the personnelfrom exploitation. In addition to this it allows them in affording basic necessitiesassociated with life. The rate of minimum fluctuates among the countries and this issometimes among the states or provinces. Minimum wage to a greater extent hasdrawn stronger criticism from the several economist which presents that as it has leadprice floor on the wages (Falk, Fehr and Zehnder, 2006). Thus this price floors hasresulted in dead weight loss within the economy. This implies that there is presence ofinefficiency. In this situation the minimum wage can force the organizations to hire fewerworkforce which can further lead to causing an increase in the rate of unemployment toa greater extent. In this situation the minimum wage can force the organizations to hire2
fewer workforce which can further result in causing an enhancement withinunemployment rate to a significant level. The emergence of minimal wage was considered as the major programme thatwas carried out by labor party in the year 1991. Under this the government has decidedto set up a low pay commission for the purpose of recommending as well deciding theNational Minimum Wage. The national minimum wage is regarded as one of the mostimportant involvement of the labour market which is being made by the regulatoryauthority of the labor. The major feature of the law was to offer appropriate wage to theemployees who are less paid without making limitation in their opportunities regardingemployment (Dolton, Bondibene and Wadsworth, 2012). Further it also includesprovision relating with no harm to the efficiency of the organization. The minimal wagewas being initiated in the year 1999 that is being encountering a tremendous amount ofgrowth. The aim beside which the national minimum wage came into existence is equityjustification. Along with this it has objective to gain labor market incentives. Moreover ithas aim to fight against the labor market discrimination. In addition to this it possess theobjective that relates with setting up the price floor where personnel can attain minimumwage per hour. The National Nominal Wage can be regarded as the minimal amount that can bepaid on per hour basis, which several number of the employees within UK are entitled togain. There is presence of varied levels of Normal Minimum Wage which depends onthe age (Kaufman, 2010). The current rate includes the following. The rate for theworkers that are aging from 21 and over are entitled to get a minimum wage rate of£6.70. In addition to this for 18- 20 years the minimum wage rate is £5.30. Along withthis £3.87 is the minimum wage rate for the workers from 16-17 that are higher thanschool leaving age but are under 18. £3.30 is the apprentice rate, for the apprenticesunder 19 or 19 or over that. This would be attained within the starting years of theirapprenticeship. The National Minimum Wage legislation is regarded as the law that demonstratesthe minimum amount which the employer would pay to its employees for carrying outthe job in a particular kind of work. The concept relating within the minimum wage3
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