@Jack.Penn · Posted 07 Jul. 2021
@Kelly.Jackson · Posted 04 Aug. 2021
Minimum wage the term is to define the minimum amount of pay that an employer is required to pay salaried employees for the assigned task for a given period, which cannot be minimized by agreement or individual contract. This definition generally refers to the nature of minimum payout, minimum wages can be set by the various authority, state, wage boards, or various labor laws.
The actual purpose of minimum wage is to protect the workers from exploitation from low pay or low wage. It can be one of the best instruments to overcome poverty, reduce inequality, including the right to equality amongst the gender. The process of the minimum wage system should be crafted in a manner to provide support and reinforce various social plans.
A living wage can be termed as the minimum or the basic income necessary for labor to meet their daily needs. The concept is not as same as the subsistence wage, theoretically, explaining the living wage can be termed as the daily cost that is required by a family to meet their daily needs like food, shelter, health, education, clothes. In other words, the living wage can be termed as the cost of the basic life of a family by several members working added with statutory payroll, deduction, and tax.
A living wage can also be termed as minimum wage in terms of payout. The basic difference that lies between minimum wage and living wage is minimum wage depends upon the amount and type of work-based and assigned for a particular time with proper payout but minimum. Whereas the living wage describes the minimum amount of capital required for the development of a family or a whole.
Subsistence wage means supporting an individual at a minimum level. The theory is based upon the postulates which state that wages or payout should be the minimum. According, to the theory, payouts or salaries are determined by cost of production of labor. The wages so determined remain constant, if the salary or wage is higher than subsistence level, then there will be an increase in population which will lead to a rise in supply and the wages will be lower compared to earlier. On the other hand, it is considered that if the value of wages falls below subsistence level then there will be a decrease in the population producing less labor force and an increase in wages.
Subsistence wage, a living wage, and minimum wage are the concepts that define the wage theories, the definition, and then use it. Where it is described the effects of rising and fall in wages and the consequences that might arise, over time.
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@Business.Upside · Posted 13 Jul. 2021
The Key Differences are:
A) Minimum Wage- It is the lowest allowable rate of pay which is allotted by the Government and the work commission, on which an employee can work upon.
B) Living Wage- It is the lowest wage at which an employee can work and can meet his subsistence needs.
C) Subsistence Wage- It is a type of wage which a vendor can offer to his potential employee/ Worker/ Contractor to make the work done while working with a government agency.