Importance of Minimum Wage in UK

Minimum Wage in
UK
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Importance of minimum wage................................................................................................3
Minimum wage Act................................................................................................................4
Benefits and drawbacks..........................................................................................................4
Significance of minimum wage in United Kingdom..............................................................5
Conclusion.......................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Minimum wage is defined as lowest wage rate per hour, which an individual is paid as
mandated by the federal law. In addition to this, it is a legally mandated price on hourly basis and
below is non-exempt by workers. The minimum amount is paid to the employer that is necessary
to pay wage earners in order to the work performed by them during a time period Aitken, A.,
Dolton, P. and (Andreyeva and Ukert, 2018). The report covers the minimum wage in United
Kingdom. In addition to this, the importance of minimum wage is discuss in the report along
with the importance of minimum wage to government, multinational companies and individuals.
Moreover, the benefits and drawbacks of minimum wage is described in the report.
MAIN BODY
Minimum wage is also known as living wage, it is the smallest amount of money that
employers and companies are legally allow to pay to the workers performing for them. It is
important for employers to give the amount that is mandate by the federal law and if not it is
legally unethical and the government has the right to take action on it.
Importance of minimum wage
Minimum wage is essential because it increase wages and decline the poverty level. It is
essential to protect the labours from exploitation of employment practices. The federal
government proposed the minimum wage act with an aim to provide right salary to workers of
their efforts. By the assistance of this, the workers especially in UK is able to fulfil their needs
and live their life properly. In addition to this, in United Kingdom the wages given to workers is
according to the hour basis and it is also based on the age of the labour (Riley, 2019). It is
determine that if a company is not provide wages as per the minimum wages it is unethical and
penalty is charge by the government. One of the most significant factor that is associated with
the minimum wages is it decline the poverty level from the country due to which the economy is
stable. Moreover, minimum wage act is important to follow as it create employment and decline
the level of unemployment rate due to which inflation rate increase that has a positive influence
on the productivity and profitability of multinational companies. The minimum wage help
certain families to earn more and meet their requirements as it is determine that people or women
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