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Jakarta Post

Harmonizing minimum wage system

  • Daniel Kostzer

Bangkok   /   Fri, December 13 2019   /  02:02 am

The minimum wage is one of the most widespread policies of labor markets. First introduced in the 1890s in New Zealand, it rapidly expanded to 90 percent coverage of the 189 members of the International Labor Organization. Minimum wages are defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed, and cannot be reduced by collective agreement or individual contract. It is meant to be the rock-bottom floor of the labor market. The main functions of minimum wage are to promote workers’ welfare, economic growth and ensure business sustainability. The ILO Convention No. 131 on minimum wage fixing defined that the minimum wage shall have a broad scope of application with minimum exclusions be adjusted from time to time and be based on the principle of full consultation with social partners. Furthermore, the minimum wage shall take...