Inflation and Increase in Minimum Wage
Minimum wage, Minimum Wage. The minimum wage is one word that remains in the mouth of civil servants both private and public. I have witnessed a lot of rise and a lot of increase in minimum wages with labor unions going on strike in my country and then I ask, what is a minimum wage?
In every country, this differs but it all balls down to one thing which is the minimum amount of wage or salary employers are expected to pay their employees on an hourly, daily, weekly, or monthly basis. Paying less than this is regarded as illegal but at the same time, there are small businesses that cannot afford to pay their workers the minimum wage because they are small businesses and they are still growing.
At this point it is understandable provided the employee signs an agreement that they will be paid the particular amount. At this point, the government would not shut down such businesses as the businesses are part of what grow the economy of the country.
Why do people always ask for a rise in minimum wage? There is something that a lot of us cannot deny and that is the fact that inflation affects our finance and with inflation, the purchasing power of every penny drops thanks to inflation. At this point, it is only right that employers increase the pay of workers as inflation hits everything and there is a rise in price of goods. When this rise do not occur, then a lot of workers start to protest for an increase because it their previous pay cannot care for their responsibilities anymore.