Minimum wages can vary by sector of employment, often in conjunction with collective bargaining to determine them. In countries with a minimum wage system, about half set the minimum at the national level, and half at the sectoral (or occupational) level [1].

Who determines the minimum wage?

Who sets the minimum wage? The federal government sets a standard minimum wage that applies to all employees in the United States. However, states and localities can set their own minimum wage rates, too.

How is minimum wage rate decided?

Revision of minimum wage rates is based on a 'cost of living index' and wages can be fixed for an entire state, part of the state, class or classes and employments pertaining to these categories. The fixation of wages is based on the norms mentioned and a wage board (different for different industry).