Objectives for legislation of a minimum wage

To enable workers meet the rising cost of living. Minimum wage legislation undertaken to enable workers to cope with the rising cost of living cause primarily by rising levels of inflation.

To reduce brain drain. This applies especially when the minimum legislated wage is higher than either the market wages or legislated wages in neighbouring countries. Workers would thus find no economic motivation to go and work in other countries where wages are lower than wages offered home.
To reduce exploitation of the workers by employers. Minimum wage legislated reduces worker exploitation by the employer since the employer is not allowed to pay workers less than the minimum wage.
To ensure industrial peace. Minimum wage legislation reduces workers’ strikes for increased wages since workers are aware that they are paid wages which are higher than rates determined by market forces of demand and supply.
To encourage labour mobility. Minimum wage legislation is aimed at increasing inter sectoral mobility of labour, say, from the private to the public sector.
To expand the demand for goods and services. Minimum wage legislation increases the purchasing power of workers hence increased demand hence increased standard of living of the workers.

To fight corruption or bribery among workers. Minimum wage legislation aims at reducing malpractices such as theft and embezzlement especially, if the minimum wage provides for workers basic needs of life.
To increase labour productivity or efficiency. Minimum wage legislation enables workers to save for investment and this increases the productivity of me economy.
To ensure fair distribution of income or wealth between different sectors and regions. Minimum wage legislation reduces wage differences between occupations in order to forge equity in income distribution.
For political support. Minimum wage legislation aims at winning political good will and support from the workers who may fear a change of government because change of political leadership may put into power leaders who are not sensitive to workers welfare.
To encourage savings or capital accumulation by the workers. Minimum wage legislation increases the level of savings and investment in an economy thus r creased output.

To attract labourforce by reducing voluntary unemployment. Minimum wage legislation is aimed at attracting labour from other sectors of the economy into the public sector.
To reduce labour instability such as moon lighting- a situation in which a worker holds more than one job simultaneously in order to make ends meet. Minimum wage legislation aims at making labourforce more stable as it avoids problems of labour instability such as absenteeism and moonlighting in order to rake a living.