Minimum wage is the lowest amount of money that employers can legally pay their employees. The purpose of a minimum wage is to provide workers in a given jurisdiction with a base salary that ideally meets the cost of fundamental living expenses and basic needs like food and housing, although this isn’t a guarantee. By setting a minimum wage, governments aim to promote decent working conditions and provide a safety net against extremely low wages while helping reduce poverty and income inequality. In general, an increase in the federal minimum wage would raise the earnings and family income of most low-wage workers and even lift some families out of poverty.
In the United States, the federal minimum wage is set at $7.25 per hour, which was established on July 24, 2009, and, except in some individual states, has not changed since. The minimum wage for employees who receive tips is $2.13 an hour. These tips must reach at least $7.25 hourly; otherwise, employers must pay their employees to make up the difference. Pennsylvania’s minimum wage differs from that of other states or cities in the United States. Effective January 1, 2024, Maryland set their minimum wage to fifteen dollars an hour. Ohio must pay their minimum wage of $10.45 an hour. The hourly rate in the United States fluctuates but hasn’t kept up with the cost of living since 1970. Allison Fenley, a student at George Washington University, believes that the minimum wage is unlivable in the U.S. and that “$7.25 per hour is not an acceptable income for paying off student debt.”
Luxembourg offers the highest minimum wage of any country worldwide at U.S. $3,357 monthly, while North Macedonia offers the lowest minimum wage at U.S. $398 per month. Minimum wage drastically changes throughout the world, impacting its people independently. Josie Gravatt, a student at John Cabot University in Rome, Italy, thinks that “No one, especially students, can live off of 4 euro (1 euro is equal to $1.09 U.S. dollars) an hour, it’s just not possible. There is a large family and community aspect in less tourist-run places where the prices are lower, and people help each other, which is very different from America.” Josie also believes that “America is better. There are a lot of opportunities, and you get paid more.”
Across the globe, minimum wage is something that will never be the same everywhere and will continue to change as we age. It will always exist and be crucial to unemployment rates and most low-wage workers. 24 states in the U.S. will be increasing their minimum wage in 2024, including Hawaii, Arizona, and New Jersey. Also, in 2024, the Council of Ministers of Spain approved the increase of minimum wage by five percent. Pay rates and prices will never stop changing around the U.S., and people will continue to adapt to these accommodations while finding creative ways to thrive amidst these changes.
Sources:
https://www.usa.gov/minimum-wage
The U.S. differs from most other countries in how it sets its minimum wage
https://www.dol.gov/agencies/whd/fact-sheets/14-flsa-coverage
https://velocityglobal.com/resources/blog/minimum-wage-by-country/
https://www.investopedia.com/articles/personal-finance/022615/can-family-survive-us-minimum-wage.asp#:~:text=The%20minimum%20wage%20in%20the,century%20at%20%247.25%20per%20hour.
https://www.paycom.com/resources/blog/minimum-wage-rate-by-state/
