Abstract
This chapter examines the role of minimum wage policy in relation to addressing the rights of precarious workers. A minimum wage policy by the State has been marked, in both literature and practice, as an important tool to redistribute wealth between different income groups, given employers’ compliance with the minimum wage law. However, firms can adopt various strategies, concerning workers’ allowance and non-monetary benefits, which is not regulated by the minimum wage legislation. This study examines firms’ behavior and its effects on the distribution of workers’ wage and benefits after the minimum wage enforcement in late 2015. This research finds that a minimum wage policy by the State benefited high-skilled workers the most by lifting up the total salary while increasing skill-based benefits, especially in export oriented garment factories. It suggests that the minimum wage legislation did not oblige all employers to offer their workers certain rights and security, including fixed wages or opportunities for skills development.
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