Personal Experiences,Study, Learning Blog of Abu Rashid aka Harun

In many locations, workforce is available below the standard minimum wage. Infact, government rules do allow such wage, even govt employees do not get minimum standard wage. In such scenario, as a private business, it would be difficult to provide minimum wage as it will take out the competitive edge. The remedy may be providing 20% extra than the going market rate and as the business gets profitable, then try to use that profit to increase salary to an extent that it matches minimum standard wage. After reaching minimum standard wage, the business may follow market rule and giving bit extra than market is always motivating for the employers.