Why there's no global minimum wage

Why there's no global minimum wage

Wages are integral to the fulfilment of work. Around the world, most countries have set a minimum wage, but there are a few that argue against it.
Thu, Oct 28 20216:24 AM EDT

The minimum wage is the lowest amount of compensation an employer can legally pay its workers.

An estimated 266 million wage earners globally — 15% of the working population — are paid below minimum wage. This is either because they are not legally covered or because of non-compliance.

"In essence, when you look at a minimum wage, it needs to be enough to cover income taxes, social contributions and other levies. And when you look at these contributions, they also change from country to country," Silvia Amaro, CNBC's Europe correspondent, said.

Some countries may have as much as 50 or more, different minimum wage rates, determined by factors like sector, occupation, age, or geographical region. Countries are also continuously adjusting their minimum wages according to changes in their economies.

Watch the video above to see how minimum wages are determined and the different arguments surrounding a minimum wage.