what does indexing the minimum wage mean
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What is 'Minimum Wage' What is 'Minimum Wage'. A minimum wage is a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job. As of June 2016, the minimum hourly wage rate in the United States is $7.25. This means it is illegal for an American worker to sell their labor for less than $7.25 per hour unless the worker falls into a category specifically exempted from the Fair Labor Standards Act (FLSA). Next Up.
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Frequently Asked Questions (FAQs) The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.ost of the specific CPI indexes have a 1982-84 reference base. That is, BLS sets the average index level (representing the average price level)-for the 36-month period covering the years 1982, 1983, and 1984-equal to 100. BLS then measures changes in relation to that figure.
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7 Things You Might Not Know About the Minimum Wage (and Why We Need to Raise It) They earn the minimum wage at a thankless job that is their only form of income. And that income is extremely low. The federal minimum wage is $7.25/hour. That means $15,080 per year for a full-time worker. Minimum wage varies depending on the state you live in, but most states have chosen to remain at the bottom of the wage scale. Simply put, the minimum wage is too low and has been that way for far too long.
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Minimum wage A minimum wage is the lowest remuneration that employers may legally pay to workers. Equivalently, it is the price floor below which workers may not sell their labor.Although minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage.t is a serious national evil that any class of His Majesty's subjects should receive less than a living wage in return for their utmost exertions. It was formerly supposed that the working of the laws of supply and demand would naturally regulate or eliminate that evil [...and...] ultimately produce a fair price.
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Minimum wage The Economist wrote in December 2013: A minimum wage, providing it is not set too high, could thus boost pay with no ill effects on jobs....America's federal minimum wage, at 38% of median income, is one of the rich world's lowest.
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Minimum wage in the United States What is the minimum wage? As of January 1st 2017, the minimum wage is $10.10 per hour. For minors working in agriculture or government, it is 85% of minimum wage, and for minors working in other industries, it is 85% for the first 200 hours. This is covered in Section 31-58 and Section 31-58a of the CT State Statutes.
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The effects of a binding minimum wage A minimum wage is a price floor implemented by the government, which ensures that an employer must pay a minimum rate of pay to an employee, and anything lower than this rate of pay is illegal. A minimum wage is binding if it is set above the equilibrium wage (Parkin, et al., 2008).
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ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN SOUTH AFRICA Such raw average wages are the average amounts of net compensation (as distinct from total employee compensation) listed in the table below. An average is just one measure of central tendency for any set of data. Another measure is a median. That is, half of the workers earned below this level. The table below shows that the median wage is substantially less than the average wage. The reason for the difference is that the distribution of workers by wage level is highly skewed.
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The effects of a binding minimum wage With relation to part (b), it can be seen that the minimum wage is â‚¬6 an hour, which is above the equilibrium wage. The equilibrium wage is now illegal. At a minimum wage of â‚¬6 an hour, 20 million of hours of labour are demanded and 22 million hours are supplied (Parkin, et al., 2008).
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ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN SOUTH AFRICA Such raw average wages are the average amounts of net compensation (as distinct from total employee compensation) listed in the table below. An average is just one measure of central tendency for any set of data. Another measure is a median. For our wage data, the median wage (or net compensation) is the wage in the middle.. That is, half of the workers earned below this level. The table below shows that the median wage is substantially less than the average wage.
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Why Is Minimum Wage Important? Advocates for increasing the minimum wage assert that an increase is necessary to improve the wages of a large number of working women and because, after adjusting for inflation, the minimum wage for tipped employees is at its lowest level since 1966.
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The Minimum Wage Debate Should Be About Poverty Not Jobs However, both reports make clear that the minimum wage is not a smart way to combat poverty. According to the CBO report, raising the minimum wage from $7.25 to $10.10 per hour, a nearly 40 percent increase, will only reduce the number of people in poverty by 900,000. This is in spite of the report saying that 16.5 million people will benefit from pay increases.
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2018 Federal and State Minimum Wage Rates The minimum wage rate is the lowest hourly pay that can be awarded to workers, also known as a pay floor. The Fair Labor Standards Act (FLSA determines the minimum wage for employees in private and public sectors, in both Federal and State governments.
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- After reaching $10.10 in 2016, the minimum wage would be adjusted annually for inflation as measured by the consumer price index.  A “$9.00 option” would raise the federal minimum wage from $7.25 per hour to $9.00 per hour in two steps—in 2015 and 2016.fter 2016, the minimum wage under the $10.10 option would increase slightly in the 2013 dollars shown in this figure because it would be indexed to the consumer price index, which would grow faster than the price index for personal consumption expenditures, CBO projects.
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- On Jan. 1, nearly a million workers in 10 states will see the value of their paychecks preserved against inflation. Workers in Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont, and Washington are protected each year by automatic indexing of their state’s minimum wage.
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Minimum wage in the United States The minimum wage in the United States is set by US labor law and a range of state and local laws. Employers generally have to pay workers the highest minimum wage prescribed by federal, state, and local law. Since July 24, 2009, the federal government has mandated a nationwide minimum wage of $7.25 per hour. As of January 2018, there were 29 states with a minimum wage higher than the federal minimum. From 2017 to 2018, eight states increased their minimum wage levels through automatic adjustment
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Minimum wage in the United States the congressional budget office cbo estimated in 2014 that raising the minimum wage to $ 10 10 and indexing it to inflation would increase the wages of 16 5 million workers in 2016 while raising it to $ 9 00 without indexing would affect 7 6 millionhe minimum wage had its highest purchasing value in 1968 when it was $ 1 60 per hour $ 10 88 in 2014 dollars from january 1981 to april 1990 the minimum wage was frozen at $ 3 35 per hour then a record setting wage freeze
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- Tweet 508. Comment. Raising the minimum wage to $10.10 an hour by 2016 would increases wages by $35 billion, and the resulting increase in consumer spending would mean a GDP boost of $22.1 billion, which would support about 85,000 new jobs, according to an analysis by the Economic Policy Institute.
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Minimum wage in the United States The Congressional Budget Office (CBO) estimated in 2014 that raising the minimum wage to $10.10 and indexing it to inflation would increase the wages of 16.5 million workers in 2016, while raising it to $9.00 without indexing would affect 7.6 million.n March 26, 2014, the state passed legislation to raise the minimum wage to $10.10 by January 1, 2017. Connecticut's tipped minimum wage is 69% of the state minimum wage (tipped employees defined as $10/wk or $2/day in tips).
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- Raise the Minimum Wage. It's been years since the Minimum Wage has been increased, and inflation has eaten away at its purchasing power. It's time to give millions of hard-working Americans a raise.Read More ».aise the Minimum Wage. It's been years since the Minimum Wage has been increased, and inflation has eaten away at its purchasing power. It's time to give millions of hard-working Americans a raise.
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Department of Labor Occupational Wages. Employment and wage data by occupation are based on the Occupational Employment Statistics (OES) survey, which collects information from approximately 52,000 businesses. Data were collected in 2012, 2013, 2014, and 2015 and then updated to the first quarter of 2016 by making cost-of-living adjustments. These estimated wages reflect a minimum wage of $9.00 per hour, which was the minimum wage in effect at the time the estimates were prepared.
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Minimum wage A minimum wage is the lowest remuneration that employers may legally pay to workers. Equivalently, it is the price floor below which workers may not sell their labor. Although minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage.
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WAGE minimum wage (the lowest wage that an employer is allowed to pay; determined by contract or by law) merit pay (extra pay awarded to an employee on the basis of merit (especially to school teachers)) living wage (a wage sufficient for a worker and family to subsist comfortably)
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The Minimum Wage Should Be Raised If Congress had kept the minimum wage in pace with inflation over this period, it would today be $10.74. But, in fact, it is $7.25 -- about two-thirds of its previous purchasing power.A major consequence is that increasing numbers of workers and their families live in poverty.f Congress had kept the minimum wage in pace with inflation over this period, it would today be $10.74. But, in fact, it is $7.25 -- about two-thirds of its previous purchasing power.
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- The Congressional Budget Office (CBO) estimated in 2014 that raising the minimum wage to $10.10 and indexing it to inflation would increase the wages of 16.5 million workers in 2016, while raising it to $9.00 without indexing would affect 7.6 million.he minimum wage had its highest purchasing value in 1968, when it was $1.60 per hour ($10.88 in 2014 dollars). From January 1981 to April 1990, the minimum wage was frozen at $3.35 per hour, then a record-setting wage freeze.
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Social Security Cost-of-Living Adjustments and the Consumer Price Index 237.4. What it means: Published by the Bureau of Labor Statistics, the Consumer Price Index measures the change in prices paid by consumers for a representative group of products and services. How it's used: The Consumer Price Index (CPI) measures inflation at the consumer level.