What is meant by minimum wage?

Minimum wage refers to the legal lowest amount of compensation that employers are required to pay their employees for their labor. This wage is established by government regulation and is designed to ensure a basic standard of living for workers.

By defining a minimum wage, the government seeks to prevent exploitation and ensure that all workers receive fair compensation for their work. This wage can vary by location and may differ based on factors such as age, type of job, and region. The primary aim of minimum wage laws is to provide financial security to individuals and help reduce poverty levels.

Understanding minimum wage is essential for both employers, who must comply with these regulations, and employees, who need to know their rights regarding compensation.