Minimum Wages

Topics: Minimum wage, Employment, Wage Pages: 4 (1274 words) Published: August 25, 2013
Minimum Wages

Minimum wage rate is one of the efforts of the government to ensure and enhance the welfare of employees in the workplace. Minimum wage is the minimum amount of compensation of an employee must receive for performing labor. It’s established by contract or legislation by the government. It’s illegal for an employee to received payment lesser than the minimum wages. Minimum wages is used to protect employees from exploit that allowed them to afford the basic neccessities of life. It’s rate fluctuates between countries and also between states or provinces. Strong criticism from many economits has drawn minimum wages. Since it establishes a price floor on wages. Price floors can lead to a dead weight loss in the economy, which means that inefficiencies exist. Because of minimum wages, company need to hire fewer employees, thus it increasing the unemployment.

Malaysia Employment Act and National Minimum Wages Consultative Act 2012 are the acts for the minimum wage rate in Maaysia. Malaysia Employment Act started its operations on 1st April 2012 where the National Minimum Wages Consultative Act 2011 started the operation on 23th September 2011. National Minimum Wages Consultative Act 2011 which belongs to the ministry of Human Resources mentioned about the basic wages for employees under section 23 of the act for those employee who are located in the peninsular of Malaysia with a minimum wage of RM900 a month and for East of Malaysia its RM800 a month. The advantages of having National Minimum Wages Consultative Act 2011 are, it’s improving the living standard of the low-income household and it also created more job opportunities for the locals. The disadvantage due to this act cause more unemployed individual. It is creating job losses in the lower job categories where job’s demand is still vulnerable for those people wokring in the rural areas. The advantages of Malaysian Employment act are thatthey given more priority and protection for...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Raising the Minimum Wage Essay
  • Essay about Minimum Wage
  • Poverty, Social Security & Minimum Wage Essay
  • Gender Wage Gap: Economic Effects Essay
  • Real-wage Unemployment Essay
  • Essay on The Legislation of Minimum Wage Can Improve the Living of the Lower Classes in Hong Kong
  • Essay on Minium Wage
  • How Has the Level of Employment/Unemployment and National Minimum Wage Legislation Impacted on the Economy as a Whole and How Will This...

Become a StudyMode Member

Sign Up - It's Free