Minimum Wage in Transition Economies

Abstract

Minimum Wage has a broad implementation in the number of countries, and is one of the main of the policies against the discrimination in labor market. Minimum wages are usually established by the government or they may come as part of collective bargaining contract. Minimum wages try to protect employees in receiving the compensation so they can at least have for expenditures that are needed for of basic needs in living. According to the ILO Convention No. 131 of Minimum wages in which are developed the main conditions for setting the wages, and where it is emphasized that minimum payment should at least include the cost for essential and necessary expenses for the employees and their families, and should include also the level of salaries and their standard of living . Mainly this way Minimum Wages should be determined and implemented when there is a possibility and depending on the relation to each countries national practices. Minimum wages have different dimensions and the comparison of some of South Eastern European countries that are still in transition and which will be the main subject of this paper, with the main emphasis of implementation of Minimum Wages in those countries. We found that there are some improvements regarding labor protection since the introduction of the minimal wages.

DOI: 10.5901/ajis.2015.v4n2s1p134