What is NMW{National Minium Wage}:
It is the lowest amount per hour that employers are legally allowed to pay their workers. The rate depends on the worker’s age and whether they are an apprentice.
Why does the government impose it?
To protect workers:
It stops employers from paying workers too little or exploiting them.
This is especially important in low-skill or entry-level jobs where workers have less bargaining power.
it ensures a basic level of fairness in all sectors.
To reduce poverty:
it helps low-paid workers afford basic needs like food, rent, and bills.
It acts as a social safety measure to prevent working individuals from falling below the poverty line.
Reducing poverty can also lower crime rates and improve community well-being.
To improve living standards:
Higher pay means workers can have a better quality of life.
It leads to better access to education, healthcare, and housing.
Improved living standards also lead to better physical and mental health outcomes.
To encourage people to work:
If wages are fair, more people are likely to seek jobs.
It makes employment more attractive than relying on welfare or unemployment benefits.
It increases participation in the labor force, especially among young people and part-time workers.
To promote fairness in the job market:
It creates a wage floor, ensuring all workers get at least a minimum amount.
It helps reduce unfair wage competition between businesses.
It discourages a “race to the bottom,” where companies compete by paying less rather than offering quality jobs.
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