What is a minimum wage?

A minimum wage is best defined as a legally mandated lowest hourly wage for workers. This means it is the lowest amount that employers are allowed by law to pay their employees for each hour of labor. The intent behind establishing a minimum wage is to ensure a basic standard of living for workers and to prevent exploitation by employers, particularly in industries where low pay is prevalent.

This legal requirement can vary by jurisdiction, as different regions may set their own minimum wage levels based on cost of living and economic conditions. By mandating a minimum wage, governments encourage equitable pay practices and strive to reduce poverty among the workforce.