The minimum wage or SMI is the legal minimum wage that a worker must receive in a given country, regardless of the type of contract he/she has. It is usually expressed in monthly salary, assuming an annual salary of twelve monthly payments.
The objective of establishing a minimum wage is to ensure that workers have a living wage and that companies cannot take advantage of moments of high unemployment to offer miserable wages. It was in Australia and New Zealand in the 19th century that a minimum wage was first set.
The government must keep updating the minimum wage to keep up with inflation.
You can see a comparison of minimum wages in the world at minimum wage ranking.
Related terms