Definition of minimum wage

The salary is the monetary remuneration that a person receives, generally at the end of the month or at the beginning of the same, or failing that, weekly or biweekly, for the work they perform.

This salary is previously agreed by the worker and his employer, and under the corresponding conditions it will be signed in a labor contract.

There are several distinctions regarding wages, this time we will deal with explaining the concept of the minimum wage and its scope.

Minimum remuneration that is agreed by law and that as such marks a parameter since no worker may receive less than what it indicates

The minimum wage is the sum agreed by law that must be paid as a minimum to all workers who are active.

In other words, this is the minimum amount that can be paid to any worker in activity and in Dependency relationship for the services you provide to your employer, as we said, is established by law decade nation and it would be a fault and clear violation of the law to pay less than that to an employee.

We could say that the amount of the minimum wage that is normally discussed by the government, employers and union and worker representatives, is closely related to the basic basket from food, that is, with the minimum amount of money that a family you need to be able to meet your basic needs.

For example, this is so important and it is vital that it is established by law so that it is observed and respected accordingly.

Origins in Australia

The first time that minimum wage was discussed was in the century XIX, in Australia and New Zealand, where it was formally established at the same.
At that time, this proposal was intended to prevent employers from abusing their needs and then paying them below what they deserve to receive.

Around 1890 a group of Australian workers began to develop protests as a consequence that they felt that they were being abused and not receiving their fair share.

This cornerstone that were the protests in Australia was transferred to other parts of the world and were very important for the same legislation be adapted to other countries.

Generally, the minimum wage is expressed in monetary units per working day, that is, the minimum payment for an employee's hour of work will be five pesos, dollars, among others.

In any case, each country establishes its own rules to regulate this issue.
Both the benefits that he reports and the costs that come from it are recurrently the object of debate by businessmen, unions and the government.

Consider the cost of living for your determination

According to inflation rates, the cost of living, among other issues, the unions will guide their discussions and demands on it.

Because it is not the same to establish a minimum wage in a economy flourishing, growing and in which inflation does not exist, while another totally different scenario will bring us that economy in which, for example, there is hyper inflation.

For example, in Argentina, which is currently going through a situation of very high inflation, the Minister of Hacienda announced an annual 42% for this year, this salary should be updated according to the level of inflation.
For this year 2016, the government, businessmen and unions agreed to an increase in it in three stages, reaching $ 8,060 in January 2017.

Advantages and benefits

Meanwhile and with regard to this issue, there are those who speak of positive consequences and others of the negative consequences of the minimum wage.

Regarding the positive ones, the following are indicated: reduction of poorly paid work, reduction of dependence on those who earn low wages, increase in productivity; and on the negative side we find the following: increase in unemployment for those who receive low salaries, since Higher salaries will imply more costs and therefore can incentivize the reduction of jobs, increase of underemployment, in especially in those places where there is no unemployment insurance and an increase in the prices of goods and services basic.

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