10.36172/EKONOMISTI.2023.XIX.02.MURMAN.TSARTSIDZE

Expanded Summary

In the current global crisis to improve the living standards of the population and the quality of working life is necessary effective state regulation of their incomes, where sallary and the minimum wage play an important role. The latter refers to the minimum social standard that guarantees the social protection of employees. It directly reflects the level and quality of economic development and social security of the country. Currently, more than 90% of the countries in the world have a minimum wage set by law. Accordingly, problem of minimal wage its definition and regulation are in the constant focus of governmental and trade union organizations in developed countries.

The paper presents the assessment of the peculiarities of determining the minimum wage, state regulation in developed countries. Is discussed an analysis of its level and dynamics. Particular attention is paid to its legislative regulation at the time of evaluate its positive and negative aspects when setting a minimum level of remuneration. The main results of the research are summarized in the concluding part of the paper.

Key words: minimal wage;sallary; state regulation; social policy.

Determining and regulating the minimum wage in developed countries is carried out taking into account national trends: through legislation; regulation on the basis of a tripartite collective agreement, using principles of ,,Tripartizm“, regulation by state executive bodies. The amount of the minimum wage is set at the national level by the relevant legislature of the country. In a particular field or region, it is determined as a result of negotiations between entrepreneurs unions and trade union representatives and it is reflected in the agreements signed between them. So, in developed countries, and especially in many EU member countries, negotiations are taking place on various levels to resolve wage and minimum wage issues. The purpose of setting the minimum wage a guarantee of social protection for hired workers is defined by the relevant convention (N131) and recommendation of the international Labour organization (N135). Accordingly, the following main factors will be taken into account when determining the minimum wage: the needs of workers and their families; the overall level of wages in the country; the value of life and its change; economic development factors; level of labour productivity and the desire to achieve and maintain a high level of employment.

In addition to the above in developed European countries at the time of setting the minimum wage level pay considerable attention to important indicators of the overall process of economic development, such as: level of social guarantees, inflation, level and quality of employment, subsistence and etc.

Despite of the minimum wage is used in many countries, still, there is no consensus on its legislative establishment at the general state level. In particular, opponents of imposing a minimum wage make the following arguments: unemployment is rising by the introduction of the minimum wage and it don’t has positive effects in terms of impact on poverty; weakens competition in the labour market, contradicts the reduction of firms' expenses during the period of economic downturn; causes prices to rise; does more harm to small businesses than large businesses; reduces demand for labour, at the expense of reduced working hours or jobs; causes inflation because businesses seek to offset costs through price increases; leads to the demotivation of the poorer sections of the population, including access to additional education; allows them to get a job. According to other researchers the expected positive effects regarding the establishment of the minimum wage at the general state level by law are: raising living standards for the poorest and for less protected layers; enhancing staff motivation for efficient, productive work; stimulate consumption by increasing the money supply to the poor; reduce business costs; reducing the social expenditures of the state at the expense of increasing the incomes of the poorest sections of the population and etc. In addition to the above, the minimum wage can play an important role in ensuring the normal reproduction of the workforce at the stage of the current global financial and economic crisis. The minimum wage is the most important factor in the real differentiation of wages, as it affects the average wage and the minimum wage, as well as the remuneration of certain qualifying groups, as well as the minimum and maximum size of remuneration, the minimum wage affects the wage structure, on the interdependence of constant and variable parts in it and on the organization of wages as a whole in the enterprise.

Developed countries pay attention not only to setting a minimum wage and setting a certain level of it, but also to ensure its periodic revision in accordance with the cost of living and current changes in the economy. Also, in addition studying the dynamics of its growth rate, its comparative analysis in relation to other important macroeconomic parameters is carried out. The main criteria in the revision process are: rising prices for consumer goods and services; inflation rates; average salary increase, labour market conjuncture; general economic conditions and etc.