Critically Discuss the Cause and Consequences of Minimum Wage on the Labor Market

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Critically discuss the cause and consequences of minimum wage on the labor market

Contents
1. Introduction
2. Definitions of minimum wage
3. Phenomenon
4. Problem areas & sources
5. Overview of the minimum wage situation in Pros and Cons 6. Recommendation
7. Conclusion
8. Bibliography

1. Introduction

The statutory minimum wage by May 1, 2011, the first level of the statutory minimum wage is set at $ 28 per hour. Provisional Minimum Wage Commission (Temporary Commission) to conduct the consultation period, the business community related organizations pointed out, they are not raised to the level of the statutory minimum wage should the wages of low-paid employees, and even more high-level, and also that they might have to raise revenue in the legal employee wages above the minimum wage level, in order to maintain the morale of the employees and not the gap between the wages of the same rank. Many working class of this chain effect is expected to narrow pay gap between all levels of industry and enterprises more significant. Frequently cited by examples of relevant organizations, including large and medium-sized restaurants and retail shops. The Legislative Council has passed the statutory minimum wage of subsidiary legislation. From May 1, 2013, the statutory minimum wage levels will be adjusted to 30 Hong Kong dollars per hour. The maximum amount of the number of records on the employer to keep the employee's total work increased from May 1, 2013, amendments to $ 12,300 a month.

2. Definition of minimum wage

The definition of wages for SMW is aligned closely with that under the Employment Ordinance. Unless otherwise specified, wages in the employment Ordinance means all remuneration, earnings. Allowances including travelling allowances, attendance allowances, commission, overtime pay, tips and service charges, however designated or calculated, capable of being expressed in terms of money, payable to an employee in respect of work done or to be done, subject to certain exclusions. Due to the calculation time is working time not include the minimum wage paid to the employee at any time, not working hours (for example, rest day pay, holiday pay, annual leave pay, maternity leave pay, sickness allowance, etc.) must not number as calculating the minimum wage part of the wages paid to employees. Minimum Wage Ordinance also listed some other payments should be counted as aspects, in order to determine whether the wages of the wage period in comply with the minimum wage paid. Whether neither minimum wage regulations, nor the Employment Ordinance prescribed in meal time and days of rest should be paid. Meal breaks and rest days whether paid or in other ways agreed between employers and employees. Whether meal breaks working hours and / or paid rest days if there wages, wage period, wage calculations, extrapolated and payment the organization of commission, in calculating the minimum wage. Under the Employment Ordinance, an employer should not unilaterally introduces any change terms and conditions of employment of employees, in order to solve their problems, and to reach a consensus.

3. Phenomenon

Australia earlier than the establishment of a minimum wage system in 1907 is a pioneer in this regard. The current minimum wage from July 1, 2012, the minimum wage weekly earnings A $ 606.40 hourly wage of A $ 15.96. (1 Australian dollar = 1.04 U.S. dollars to the average exchange rate for August 2012 to September, approximately weekly earnings of $ 630 at an hourly rate of $ 16.6.) Reference,http://www.fairwork.gov.au/media-centre/latest-news/2012/06/Pages/20120601-2012-minimum-wage-decision-released.aspx The minimum wage in most EU countries are after-tax monthly salary in the form of (crude) defines, the United Kingdom and Ireland by hours of formal definitions. 27 EU countries, 20 countries have established a statutory minimum wage, such as: the lowest in...
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