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 sect...