Introduction
According to the government, federal wages are the lowest amount an employee earns in an hour. It is the fixed wage that compulsorily has to be given to the employee. The state government decides based on the nature of the occupation.
Why are federal minimum wages necessary?
Federal wages protect employees. Employees get proper wages for their work from the company due to this system of wages. Employees can fulfil their basic needs and their family's needs from these wages. Employees can live improved lives and have a better standard of living. It also helps to protect the health and well-being of employees.
The state government decides the federal minimum wage according to the state's prices of goods and services. Every state has different minimum wages.
Benefits of increasing minimum wages
Increasing minimum wages will help increase the employee's devotion to his work. Many employees may quit their jobs. The reason behind this is low wages. This can be stopped if the minimum wages are increased. This will also help the company because the company will not have to waste money searching for new employees.
The standard of living and the spending ability of the employees will increase. This will be helpful for the companies since more products and services can be sold.
Drawbacks of increasing wages
It is not certain that an employee will work with loyalty even after increasing the minimum wage. Also, increasing minimum wages will increase the operating cost of the company. The wage increase can make the products and services of the company costly since its operating cost has increased. This may cause inflation.
Conclusion
Increasing federal wages is good for employees. Their standard of living and the ability to spend money will grow. However, there is also a chance that if the wages have increased, the company will increase the prices of its products and services as well, which is not beneficial to employees.
FAQs
1. Should the government increase the federal minimum wages of employees?
The federal minimum wage for employees must be increased if the employees cannot live good lives and fulfil the needs of their families.
2. Can an increase in federal wage be good for the company?
Yes, it can be good for the company because its workers will not leave their jobs, and the cost of hiring to fill empty positions will decrease.
3. What will be the effect of an increase in federal wage on an employee?
The spending and working loyalty of the employee will increase.
4. Why do employees leave their jobs?
Most employees leave their jobs due to low salaries, while some have other reasons.
5. Do companies give federal minimum wages to all employees?
Yes, companies give federal minimum wages to all employees.
