Minimum Wage Systems: An Asia Pacific Perspective

Abstract

Modern minimum wage systems have operated for more than a century. Some Pacific countries were among the pioneers in establishing minimum wages. This paper discusses the many aims that minimus wages are designed to achieve. These include promoting social justice, alleviating poverty, promoting economic development, setting benchmarks for other wages and social security payments, and controlling inflation. The Asia Pacific region has only a small number of countries with adequate minimum wage systems. There are many deficiencies in the various systems. They often do not cover all workers, are often set at unrealistically low levels, or are enforced inadequately. The paper discusses the causes of these deficiencies and the consequences of them for those who rely on minimum wages.