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5. (i) Explain the term national minimum wage - Leaving Cert Business - Question 5 - 2019
Question 5
5. (i) Explain the term national minimum wage. The term national minimum wage refers to the legal minimum hourly payment that must be paid to employees as set by th... show full transcript
Worked Solution & Example Answer:5. (i) Explain the term national minimum wage - Leaving Cert Business - Question 5 - 2019
Step 1
Explain the term national minimum wage.
Answer
The term national minimum wage refers to the legal minimum hourly payment that must be paid to employees as set by the government. This wage is established to ensure a basic standard of living for workers and is intended to protect them from exploitation by employers. The national minimum wage can vary based on factors such as age and the specific sector of employment.
Step 2
Describe one possible economic impact on Irish business of the increase in the national minimum wage.
Answer
One possible economic impact on Irish businesses due to an increase in the national minimum wage is that profits of the business may decrease due to higher costs. Specifically, as the legal minimum wage rises, businesses often face increased costs associated with employee wages. This can compel businesses to make difficult decisions such as reducing staff numbers or facing potential redundancies, as the increased payroll expenses may not be sustainable. Additionally, this rise in wages can lead to higher prices for goods and services as companies pass on the increased labor costs to consumers.