What is minimum wage?

The minimum wage is the lowest amount of earnings that an employer is legally required to pay workers for their work during a specified period. It is intended to protect workers from receiving unreasonably low pay and to ensure fair compensation for their labour.

What is the purpose of minimum wage?

The primary purpose of minimum wage is to safeguard workers against receiving wages that are unreasonably low and do not adequately reflect the value of their work. It serves to establish a baseline standard for compensation and to promote fair labour practices.

What is the federal minimum wage in the United States as of 2023?

As of 2023, the federal minimum wage in the United States is $7.25 per hour. However, states and local municipalities have the authority to set their own minimum wage rates, provided that the state rate is higher than the federal rate. Minimum wage rates can vary significantly from one location to another.

What are income thresholds?

Income thresholds represent the total income earned by an individual or household during a tax year that is subject to income tax. This includes various forms of income, such as salary, bonuses, self-employment profits, benefits, pension income, rental income, savings interest, dividends, and more.

Are there exemptions from minimum wage requirements?

Yes, there are exemptions from minimum wage requirements in certain cases.

For example: Tipped workers may receive a lower minimum wage (e.g., $2.13 per hour in the United States) if they earn at least the federal minimum wage when tips are included.

Students and employees under the age of 20 may be subject to youth minimum wage provisions and receive a lower minimum wage for a limited period.