List of minimum wage laws

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See also: List of minimum wages by country

A minimum wage is the lowest hourly, daily or monthly wage that employers may legally pay to employees or workers. More than 90% of all countries have some kind of minimum wage legislation.^[1]

The first national minimum wage law was enacted by the government of New Zealand in 1896, followed by Australia in 1899 and United Kingdom in 1902.^{[citation needed]} In the United States, statutory minimum wages were first introduced nationally in 1938,^[2] and in the United Kingdom in 1999.^[3] In the European Union, 18 out of 27 member states currently have national minimum wages.^[4] Many countries, such as Norway, Sweden, Finland, Denmark, Switzerland, Germany, Austria, Italy, and Cyprus have no minimum wage laws, but rely on employer groups and trade unions to set minimum earnings through collective bargaining.^[5] Nearly all states within the United States have minimum wage laws; South Carolina, Tennessee, Alabama, Mississippi and Louisiana are the only states yet to set a minimum wage law.^[6]

Further information: Minimum wage

Contents 1 The Industrialized West 1.1 Australia 1.2 Canada 1.3 France 1.4 Ireland 1.5 United Kingdom 1.6 United States 2 Other countries 2.1 Brazil 2.2 People's Republic of China 2.3 India 2.4 Israel 2.5 Japan 2.6 Pakistan 2.7 Poland 2.8 Ukraine 2.9 Russia 2.10 Estonia 2.11 South Korea 2.12 Sri Lanka 2.13 Republic of China (Taiwan) 3 References

[edit] The Industrialized West

The first moves to legislate wages did not set minimum wages, rather the laws created arbitration boards and councils to resolve labour conflicts before the recourse to strikes.^{[citation needed]}

• In 1896, New Zealand established such arbitration boards with the Industrial Conciliation and Arbitration Act
• In 1899, the state of Victoria, Australia established similar boards
• In 1907, the Harvester decision was handed down in Australia. It established a 'living wage' for a man, his wife and two children to "live in frugal comfort"

The established similar boards

• In 1909, the Trade Boards Act was enacted in the United Kingdom, establishing four such boards
• In 1912, the state of Massachusetts, United States, set minimum wages for women and children
• In the 1960s, minimum wage laws were introduced into Latin America as part of the Alliance for Progress; however these minimum wages were, and are, low^[7]

In the United States and other countries, minimum wage laws were a common demand of labor unions.^{[citation needed]}

[edit] Australia

• The notion of a "basic wage" was first established in 1907 with the Harvester Judgment.
• The current federal minimum wage for full or part time employees aged over 21 in Australia is AU$13.47 (~US$10.50) per hour.^[8]
• In 2005, the Federal Government implemented significant changes to the nation's labour system. These changes do not explicitly lower the minimum wage (in nominal terms) but may slow its rate of increase. (See also, Australian Industrial Relations Law Reform 2005.)

[edit] Canada

Main article: List of minimum wages in Canada

Under the Canadian Constitution's federal-provincial division of powers, the responsibility for enacting and enforcing labour laws rests with the ten provinces; the three territories also were granted this power by virtue of federal legislation. This means that each province and territory has its own minimum wage. The lowest general minimum wage in force as of January 2007 is that of 3 provinces (C$7.00 an hour), the highest is that of Nunavut (C$8.50 an hour). In Ontario it is C$8.00 an hour. Some provinces allow lower wages to be paid to liquor servers and other tip earners, and/or to inexperienced employees. British Columbia allows employers to pay as little as C$6 an hour to an inexperienced worker, but increases to $8 an hour after a worker has gained 500 hours of experience.

The federal government could theoretically set its own minimum wage rates for workers in federal jurisdiction industries (railways, for example). As of 2006 however, the federal minimum wage is defined to be the general adult minimum wage rate of the province or territory where the work is performed. This means, for example, that a railway company could not legally pay a worker in British Columbia less than C$8 an hour regardless of the worker's experience.

[edit] France

As of July 2006, the minimum wage in France is set at €8.27 (~US$10.80) per hour. In 2004, 15% of the working population received the minimum wage. The minimum wage in France is updated every year in July by the government. By law, the increase cannot be lower than the inflation for the current year. In the recent years the increase was up to two times higher than the inflation (around 5% raise with an inflation around 2%).

[edit] Ireland

Ireland's minimum wage was introduced in 2000, and is currently €8.30 (~US$10.80) an hour. This is subject to reduction as follows:

• 30% reduction for all employees under 18
• 20% reduction for employees over 18 in their first year of employment in any job since they turned 18
• 10% reduction for employees over 18 in their second year of employment in any job since they turned 18

It may further be reduced by up to €7.73 a day if lodgings or food are provided as part of a job.^[9] Due to general difficulties in finding employees, most jobs pay above the minimum wage, with only 3.1% of employees receiving it in 2004.^[10]

In July 2007, the minimum wage in Ireland will rise to €8.65 (~US$11.25) per hour. This was announced in the 2007 Irish Budget.

[edit] United Kingdom

Municipal regulation of wage levels began in some towns in 1524. Later, the Trade Boards Act of 1909 initially created four Trades Boards that set minimum wages which varied between industries for a number of sectors where "sweating" was generally regarded as a problem and where collective bargaining was not well established. This system was extended considerably after the Second World War; in 1945 Trades Boards became Wage Councils, which set minimum wage standards in many sectors of the economy, including the service sector as well as manufacturing. Wage Councils were finally abolished in 1993, having fallen into decline due, in large part, to Trades Union opposition. A lower limit of pay, or "pay floor" was regarded as threatening the voluntary system of collective bargaining favoured in the UK. The government had first made a serious attempt to abolish Wage Councils in 1986, having abandoned existing legislation that tried to widen the scope of voluntary agreements to include those firms that had not taken part in negotiations, such as the Fair Wages Resolutions. These required that government contractors pay fair wages and respect the rights of their employees to be members of trades unions.

A National Minimum Wage (NMW) was introduced for the first time by the recently elected Labour government on 1 April 1999 at the rate of £3.60 per hour for those workers aged 22 and over. This rate was set after the Low Pay Commission (LPC), an independent body the government appointed in July 1997 to advise it on low pay, recommended the rate.^[11] The LPC's permanent status was later confirmed and it continues to make recommendations to government on the NMW, which has been uprated in October every year since 2000. The LPC board consists of nine members—three trade unionists, three employers, and three labour market relations experts. The Commission undertakes consultations each year to gather available evidence before making recommendations in its biennial review—the next such set of recommendations being due in the spring of 2007.

The current minimum wage in the UK for adults aged 22 or older is £5.52 per hour (c.$10.00, compared with US$5.15 in the US). For workers between the ages of 18 and 21 the minimum wage is £4.60 (~US$8.65) per hour. The minimum hourly wage for all workers under the age of 18 (who are no longer of compulsory school age) is £3.40 (~US$6.40). There is no minimum wage for those still of compulsory school age.

Some workers undertaking apprenticeships or accredited training may be exempted (that is, not considered eligible to receive the NMW) for a certain period of time, which varies according to their age and the length of time in employment. Other categories of worker who are exempt include au pairs, share fishermen, clergy, those in the Armed Forces, prisoners and some people working in family businesses. The rate payable under the NMW can, in all cases, also be reduced where accommodation is provided to the worker.

Unlike most other employment rights legislation in the UK, which generally rely on affected individuals raising grievances and making claims, if necessary, before tribunals to enforce these rights, the NMW has compliance teams, attached to Her Majesty's Revenue and Customs (HMRC) offices who will act on approaches from workers who think they are being paid less than the minimum wage by contacting and visiting their employers. Affected workers can either make a complaint directly to a national helpline (0845 6000678) or seek advice from another agencies such as their local Citizens Advice Bureau or the Scottish Low Pay Unit—this is particularly recommended if other employment rights issues are involved, as the HMRC can only deal with minimum wage enquiries.

See also: National Minimum Wage Act 1998

[edit] United States

This article documents a current event. Information may change rapidly as the event progresses.

Further information: List of U.S. state minimum wages

In 1912, Massachusetts organized a commission to recommend non-compulsory minimum wages for women and children. Within eight years, at least thirteen U.S. states and the District of Columbia would pass minimum wage laws^[12]. The Lochner era United States Supreme Court consistently invalidated compulsory minimum wage laws. Such laws, said the court, were unconstitutional for interfering with the ability of employers to freely negotiate appropriate wage contracts with employees.^[13]

The first attempt at establishing a national minimum wage came in 1933, when a $0.25/hour standard was set as part of the National Industrial Recovery Act. However, in the 1935 court case Schechter Poultry Corp. v. United States (295 U.S. 495), the United States Supreme Court declared the act unconstitutional, and the minimum wage was abolished.

The minimum wage was re-established in the United States in 1938 (pursuant to the Fair Labor Standards Act, which can be viewed here), once again at $0.25/hour ($3.22 in 2005 dollars). It had its highest purchasing value ever in 1968, when it was $1.60/hour ($9.12 in 2005 dollars). As of January 2007, the federal minimum wage is $5.15/hour.

The new Democratic-led 110th Congress proposed the Fair Minimum Wage Act of 2007 on January 5, 2007. This legislation would raise the Federal Minimum Wage to $7.25/hour over 26 months and it was passed by the House of Representatives on January 10, 2007. To become law, the bill would also need to be passed by the Senate and signed by the President. If the bill is vetoed by the President, Congress can attempt to override the veto. The act does not amend the Fair Labor Standards Act in regards to American Samoa—its minimum wage would continue to be set by a committee appointed by the U.S. Department of Labor if enacted without changes.^[14][15] After accusations by Republican lawmakers that Speaker of the House Nancy Pelosi was unethical because Del Monte (parent company of StarKist Tuna which owns one of the two tuna canneries in Samoa) is based in her district, she instructed a House committee to have Samoa be included. Samoa's representative Eni Faleomavaega noted that the territory has not been subject to the mainland minimum wage and said, "...the global tuna industry is so competitive that it is no longer possible for the federal government to demand mainland minimum wage rates for American Samoa without causing the collapse of our economy...".^[16]

On February 1, 2007, the United States Senate passed a version of the minimum wage increase which differs from the House's version by including tax breaks for small businesses. This difference will have to be resolved between the two houses of the Congress before the bill can go to the President for his signature.^[17] Subsequently, the House added (smaller) tax breaks to its version of the bill. Differences are still to be reconciled.

During his presidency, Bill Clinton gave states the power to set their minimum wages above the federal level. As of January 1, 2007, 29 states had done so.^[18] Community organizing efforts initiated by ACORN were responsible for the increases in some states such as Florida, Nevada, and Ohio.^[19] Some government entities, such as counties and cities, observe minimum wages that are higher than the state as a whole. One notable example of this is Santa Fe, New Mexico, whose $9.50-per-hour minimum wage is currently the highest in the nation,^[20] while New Mexico itself observes the federal minimum. Another device to increase wages, living wage ordinances, generally apply only to businesses that are under contract to the local government itself.

On 7 November 2006, voters in six states (Arizona, Colorado, Missouri, Montana, Nevada, and Ohio) approved statewide increases in the state minimum wage. The amounts of these increases ranged from $1 to $1.70 an hour and all increases are designed to annually index to inflation.^[21]

Many "progressive" politicians in the United States advocate linking the minimum wage to the Consumer Price Index, thereby producing small annual increases rather than the larger hikes that tend to be adopted when legislation to do so is passed. So far, Ohio, Oregon, Missouri, Vermont and Washington have linked their minimum wages to the consumer price index. Beginning April 1, 2007, the minimum wage in Iowa will be $6.20 and will increase again $7.25 on January 1, 2008.

Minimum wage jobs rarely include health insurance coverage,^{[22] [23]} although that is changing in some parts of the United States where the cost of living is high, such as California.

Kansas is the only state to have a minimum wage lower then the federal standard, at $2.65/hour. However, workers that qualify under the Fair Labor Standards Act are required to be paid the federal minimum wage. Most workers earning less than the federal minimum wage are minors and certain classes of farm workers.

A strong majority of American economists believe the minimum wage increases unemployment, though there is disagreement as to the magnitude.^[24] As a policy question, the minimum wage has to some extent split the economics profession with just under half believing it should be eliminated and a slightly smaller percentage believing it should be increased, leaving rather few in the middle.^[25]

[edit] Other countries

The current (2006) "monthly income for a full-time employee earning the national minimum wage" for twenty industrialised countries can be found here at the Europa Web site.

[edit] Brazil

The Brazilian national minimum wage is adjusted annually. As of December 2006, the minimum wage is R$350 (~US$164.28) per month.[2]

Brazilian states can set higher minimum wages, which may vary in different economic sectors.

In Brazil each increase the minimum wage results in a large burden on the federal budget, because the minimum wage is tied to social security benefits.

[edit] People's Republic of China

The Ministry of Labor and Social Security set China's first minimum wage law on 1 March 2004. The Regulations on Enterprises Minimum Wage was made to "ensure the basic needs of the worker and his family, to help improve workers' performance and to promote fair competition between enterprises." One monthly minimum wage was set for full-time workers, and one hourly minimum wage for part-time workers. Provinces, municipalities, and autonomous regions are allowed to legislate for their own minimum wage separate from the national one.^[26]

Guangdong Province increased its minimum wage on 1 September 2006 and was split into five categories. The highest is ¥25.80 per month or ¥4.66 (~US$0.60 an hour) an hour (in Guangzhou city). The lowest is ¥20.70 per month or ¥0.69 (~US$0.25) an hour.^[27]

[edit] India

Minimum wage in India is dependent on the industry. It varies between Rs 50.33 and Rs 86.63 per day.^[28] However, these figures vary depending on the location (urban or rural).

[edit] Israel

As of April 2006, the minimum wage was ?3,401.18 per month, or ?19.28 an hour.^[29]

[edit] Japan

In Japan minimum wage depends on the industry and the region. The lowest minimum wage for a region (Miyazaki) is ¥4,712 (~US$40) per day, and the highest minimum wage for a region (Tokyo, Kanagawa, Osaka) is ¥5465 (~US$46.30) per day. The minimum wages are set by the Minister of Labour or the Chief of the Prefectural Labour Standards Office. Recommendations are made by the Minimum Wage Council.^[30]

[edit] Pakistan

Pakistan's first minimum wage was implemented in 1992 at 1,500PKR (~US$24.60) per month. In 1996 it was raised to 1,650PKR (~US$27.10) per month. As of 1998 the minimum wage was 1,950PKR (~US$32) per month. This wage does not apply to agricultural workers, however.^[31] Current minimum wage in Pakistan (as by the government announcement in 2006) is PKR 4000 per month (Equivalent to $66 per month)

[edit] Poland

As of 1 May 2006 the Polish minimum wage was 899,10PLN (~US$300) per month.^[32]

[edit] Ukraine

As of 1 June 2006 the Ukrainian minimum wage was 375UAH (~US$75) per month.^[33]

Goverment anounced minimal wage grouth to UAH 400 ($ 80) at 1 April 2007.

[edit] Russia

As of 1 May 2006 the Russian minimum wage was 1100RUB (~US$41.85) per month.^[34]

[edit] Estonia

As of 1 January 2007 the minimum wage in Estonia was set at 3600 EEK (~US$300) per month.^[35]

[edit] South Korea

As of January 1, 2007, the South Korean minimum wage was ?3,480 (~US$3.72) per hour, ?27,840 (~US$29.79) per day, or ?786,480 (~US$841.52) per month. Companies of less 10 employees are exempt of this law.^[36]

[edit] Sri Lanka

Sri Lanka does not have a national minimum wage, but the law provides for and enforces the decisions of wage boards for specific sectors and industries.^{[citation needed]}

[edit] Republic of China (Taiwan)

The Republic of China government does not have a set minimum wage, but a basic wage in its Labor Standards Law serves the minimum wage function. The basic wage set per month is NT$15840, and has not been readjusted since 1997. The calculated basic hourly wage is NT$66 (US$2).[3]

[edit] References

1. ^ ILO 2006: Minimum wages policy (PDF)
2. ^ Sanjiv Sachdev (2003). "Raising the rate: An evaluation of the uprating mechanism for the minimum wage". Employee Relations. Retrieved on 2007-02-12.
3. ^ History of the National Minimum Wage. Employment Matters. United Kingdom Department of Trade and Industry (17 June 2006). Retrieved on 2006-06-22. Note: Date enacted was 1 April 1999
4. ^ Eurostat (2006): Minimum Wages 2006 - Variations from 82 to 1503 euro gross per month(PDF)
5. ^ Ehrenberg, Ronald G. Labor Markets and Integrating National Economies, Brookings Institution Press (1994), p. 41
6. ^ http://www.dol.gov/esa/minwage/america.htm
7. ^ Bethell, Leslie (June 29, 1990). The Cambridge History of Latin America. Cambridge University Press. ISBN 0-521-24518-4.  p. 342.
8. ^ 2006 Minimum Wage Decision (Australia) (HTML). Australian Fair Pay Commission. Retrieved on 2006-12-19.
9. ^ Minimum Rates of Pay in Ireland—Irish government information Web site, retrieved on 2006-11-30.
10. ^ Minimum Pay in EU25: Spain and UK have lowest percentage of workforce on minimum wage—FinFacts.com article, published 13 July 2006, retrieved on 2006-11-30.
11. ^ What We Do Low Pay Commission
12. ^ William P. Quigley, "'A Fair Day's Pay For A Fair Day's Work': Time to Raise and Index the Minimum Wage", 27 St. Mary's L. J. 513, 516 (1996)
13. ^ Id. at 518.
14. ^ Fair Minimum Wage Act of 2007
15. ^ Wage Rates in American Samoa. Retrieved on 2007-01-14. See also: Special industry committees for American Samoa.
16. ^ Faleomavaega Comments on Minimum Wage Bill Now Before Congress
17. ^ http://money.cnn.com/2007/02/01/news/economy/minimum_wage/index.htm?cnn=yes
18. ^ Minimum Wage Laws in the States—January 1, 2007. U.S. Department of Labor. Retrieved on 2007-01-05.
19. ^ http://www.cleveland.com/news/plaindealer/index.ssf?/base/news/116297959718990.xml&coll=2 Ohio Plain Dealer, Nov 8, 2006
20. ^ Ordinance 2003-8. City of Santa Fe. Retrieved on 2006-12-16.
21. ^ http://www.commondreams.org/views06/1111-24.htm ACORN and Unions Increase Working Wages Across the Country
22. ^ Health plans dwindle in U.S. Number of firms offering insurance drops as costs rise. San Francisco Chronicle.
23. ^ The Family Connection.
24. ^ Fuller, Dan und Doris Geide-Stevenson (2003): Consensus Among Economists: Revisited, in: Journal of Economic Review, Vol. 34, No. 4, Seite 369-387 (PDF)
25. ^ Whaples, Robert (2006): "Do Economists Agree on Anything? Yes!" Economists' Voice, November [1]
26. ^ China sets minimum wage rules (HTML). Embassy of the People's republic of China in the United States of America (2004-02-06). Retrieved on 2006-12-19.
27. ^ Social GovernanceS (August 2006). Guangdong to Raise Minimum Wages in September 2006 (PDF). SGS Hong Kong Limited. Retrieved on 2006-12-19.
28. ^ Ministry of Labour and Employment (1948). MINIMUM WAGES ACT, 1948 (HTML). Ministry of Labour and Employment (India). Retrieved on 2006-12-19.
29. ^ Worker's Rights (HTML). Israeli Government Portal (April 2006). Retrieved on 2006-12-19.
30. ^ Realization of Meaningful, Secure Employment for Workers (HTML). Ministry of Health, Labour and Welfare of Japan. Retrieved on 2006-12-19.
31. ^ Bureau of International Labor Affairs (1998). Pakistan Minimum Wage (HTML). U.S. Department of Labor. Retrieved on 2006-12-19.
32. ^ Error on call to Template:cite web: Parameters url and title must be specified (HTML) (2006-12-11). Retrieved on 2007-01-04.
33. ^ Error on call to Template:cite web: Parameters url and title must be specified (HTML) (2006-12-11). Retrieved on 2007-01-04.
34. ^ Minimum Wage to Raise in Russia Next Year (HTML). Kommersant (2006-12-11). Retrieved on 2007-01-04.
35. ^ FedEE review of minimum wage rates (HTML). Federation of European Employers (2006-12-29). Retrieved on 2007-01-04.
36. ^ Country Reports on Human Rights Practices (HTML). Bureau of Democracy, Human Rights, and Labor (2004-02-25). Retrieved on 2006-12-20.