Write my Essay – Explain the distinction between the minimum wage and the living wage

Wage refers to the amount paid to an employee by the employer for work done during a specified period. Wages may be paid in reference to an annual payment, monthly, weekly or daily the mode of payment is set and agreed by both the employee and the employer. There are several types of wages but the most common ones are minimum wage and living wage.

Minimum wage refers to the amount that the lowest employee should be paid by the employer. This rate is set by either the government or by the cooperative act sec 14. The minimum wage is mainly set to protect the employees from exploitation by the employers and also the government benefits from it by being in a position to control the growth domestic product and revenue.

While living wage refers to the amount that an individual requires to be in a position to meet his or her basic needs. In most cases employees determine how well a specific job is paying by the ability its pay has to helping in meeting the basic financial requirements.

2. Under the Fair Labor Standards Act when does a `tip` go from being a gift or gratuity to being classified as wages? Do you agree that employers should have the option to include an employee’s tip as part of their wages? Explain

Tips are given by the employer to the employee. There are mainly given after the employee has done some extra piece of work that is not part of the normal employee duties. An employee may also receive a tip as a form of appreciation a good work. According to Fair labor standards Act tips can be classified as wages if they given to an employee for six months concurrently.

Employers should include an employee’s tip in the employee’s wages. This is because if the tip is part of the wage the employer feel more pressured to pay the tip since the employee expects the wage after a specified time. Tip should also be as wages since the employees feel more confident to the organization hence they feel motivated if a summation of high levels of income.



1. essaylab.com. 2016. Write my essay – we are ready to satisfy this request. [ONLINE] Available at:http://essaylab.com/write-my-essay. [Accessed 16 September 2016].


2. Myth and Measurement: The New Economics of the Minimum Wage, Cato Institute, April 22, 2006


3.  http://www.epinet.org/briefingpapers/minimumw_bp_1996.pdf.


4. Low Pay Commission (2005). National Minimum Wage – Low Pay Commission Report 2005