Abstract
Minimum Wage has a broad implementation in the number of countries, and is one of the main of the policies against the discrimination in labor market. Minimum wages are usually established by the government or they may come as part of collective bargaining contract. Minimum wages try to protect employees in receiving the compensation so they can at least have for expenditures that are needed for of basic needs in living. According to the ILO Convention No. 131 of Minimum wages in which are developed the main conditions for setting the wages, and where it is emphasized that minimum payment should at least include the cost for essential and necessary expenses for the employees and their families, and should include also the level of salaries and their standard of living . Mainly this way Minimum Wages should be determined and implemented when there is a possibility and depending on the relation to each countries national practices. Minimum wages have different dimensions and the comparison of some of South Eastern European countries that are still in transition and which will be the main subject of this paper, with the main emphasis of implementation of Minimum Wages in those countries. We found that there are some improvements regarding labor protection since the introduction of the minimal wages. DOI: 10.5901/ajis.2015.v4n2s1p134
Highlights
Minimum wages are usually established by the government or they may come as part of collective bargaining agreement
Minimum wages when they are putt in practice can increase the remuneration of the workers with lower incomes, but they can increase unemployment if the standards of living in those countries are high and average salaries are in the high range, putting in practice minimum wages depend from other labor policies that are implemented in those countries
Depending on their country of implementation minimum wages can have both positive and negative impact (The World Bank, 2009) one of the recommendations of the (OECD, Jobs Strategy.1994) regarding minimum wages is that flexibility of the costs that are involved with minimum wages depends on how the minimum wages are introduced if they are implemented in average earnings, they can have their effect in employment so they should take into account different patterns as indexing them to inflation and prices, age or even different regions in country
Summary
Minimum wages are usually established by the government or they may come as part of collective bargaining agreement. Minimum wages are important since they do protect workers with lower skills, which usually are in the lower end of the hierarchy in the organizations and in their relevant labor market, it very important because it can reduce gender wage inequality. Minimum wages when they are putt in practice can increase the remuneration of the workers with lower incomes, but they can increase unemployment if the standards of living in those countries are high and average salaries are in the high range, putting in practice minimum wages depend from other labor policies that are implemented in those countries. Depending on their country of implementation minimum wages can have both positive and negative impact (The World Bank, 2009) one of the recommendations of the (OECD, Jobs Strategy.1994) regarding minimum wages is that flexibility of the costs that are involved with minimum wages depends on how the minimum wages are introduced if they are implemented in average earnings, they can have their effect in employment so they should take into account different patterns as indexing them to inflation and prices, age or even different regions in country
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