According to Maslow’s hierarchy of needs theory, the journey to self-fulfilment is taken in five steps.
The first is to meet basic needs like food, water, warmth, and rest. It is also the motivation behind most people’s quest to earn a living.
But paying wages is tricky. On one side, you have an employer who seeks to pay the minimum amount to get a job done. And on the other hand, an employee who strives for higher wages.
This is an acute problem for low paying jobs, where there is a risk that salaries are not enough to meet basic needs. For workers to live comfortably, the right balance must be reached.
This is what the government looks to address when they implement a minimum wage.
The minimum wage is not enough
This is a national income floor - that is, the lowest amount that can be paid to anyone working at a job. Many countries