The least amount of remuneration that is required by an employer to be paid to their employees is dubbed the minimum wage. By federal law, an employer is not allowed to pay lesser than the allotted federal minimum wage set by the given country. Students may sometimes question, “What is minimum wage?” and why they need to learn about it. While in college, most scholars will look for a job for students to help keep up with the high expenses of gaining an education in a university. College expenses can be significantly high, especially if one isn’t smart about budgeting. Looking for a job then comes as a savior, helping scholars keep their student loans as low as possible.
The salary definition can differ from country to country. In the United States, the minimum wage for covered nonexempt workers is $7.25. While this is a significantly low number, some countries have it worse. You may learn more about such laws by reading up free essays on minimum wage and understand how it works. For instance, India, one of the world’s largest economies, offers an extremely competitive labor cost in Asia. The national-level minimum wage for Indian workers is as low as $2.8 per day.
One of the most sought out countries for outsourcing is Bangladesh, and for a good reason. The minimum wages are as low as $0.09, making it extremely competitive for global companies to invest in. However, one must keep in mind that countries with such minimal wages also often have a low living cost.
The Purpose of Minimum Wages
The minimal salary system is the government’s way of regulating payments to their workers. It is usually set by the statute, a wage board, a council, or by the industrial or labor courts by considering several factors such as cost of living and the skill level of workers. In the United States of America, the minimum wage provisions are contained in the Fair Labor Standards Act (FLSA).
The sole purpose of having a set minimum wage is to protect employees against low pay. These laws ensure an equitable share of progress and a payment system that is enough for those employed to keep up with their basic survival needs. It can also help overcome poverty and reduce existing inequality between workers of different backgrounds, gender, and ethnicity.
In most cases, the minimal wages includes several components such as:
- Basic pay
- Annual bonuses
- Allowances for non-standard work hours
- Productivity and performance pay
Can a Student Earn Significantly While in College?
One of the best ways in which college students can contribute to their financial aid status is by seeking out a summer job. Some studies show that some scholars can completely forego student aid by getting a part-time job in college and a full-time job during the holidays. When one gains income from federal work-study jobs, the income doesn’t count and doesn’t affect the financial aid. The payment is also reduced by allowances for FICA taxes, income tax paid, and other state taxes that can contribute from 10 to 25 percent to the student’s gross income.
The 13 weeks in summer and the 30 weeks in one’s academic career can lead college scholars to earn over $6380 per year at the minimum wage of $7.25 per hour, as allotted by the U.S. Fair Labor Standards Act. The state of Alabama has the least allocated minimum wage, but scholars in other states such as Washington D.C. can earn $15 per hour as stated by the law. Where a scholar is located is determinant of how much they make.
However, college students may be eligible for a higher hourly wage. Scholars look at their college experience as a way of honing their skills to take on their future careers. One may be better equipped to choose their future careers by reading free essay samples at https://samploon.com/free-essays/career-goals/ and find out about student’s experience in the job market. Depending on the skills required for their chosen job, some may be able to negotiate up to $12.Such individuals may be able to earn over $10,000 per year.
Much deliberation needs to be applied while allotting the minimum wage to states. Raising salaries can help get people out of poverty by increasing income. However, its increment can also lead to increased unemployment as it can lead to a rise in automation. However, one’s salary is dependent on how far up the hierarchical ladder they are in the company one works for. As such, students need to do well in college such that they can go on to have lucrative careers in the future.