Purpose of Minimum Wage Law 1. Rationalize fixing of minimum wages 2.

Promote productivity- improvement and gain- s aring measures !isadvantage of minimum wage. a. Perpetuates pro"lems of unemployment and poverty amid rapid economic growt "ecause of ig cost of la"or nationwide ma#ing it less competitive to investment and $o" creation. %ountry losses out on competition from its neig "or. Lesser wages could "e given to less affluent areas of country& lowering la"or costs& decreasing unemployment& still increasing income of wor#ers in suc areas surpassing t eir old incomes& ma#ing country overall competitive wit neig "ors in investments& expanding la"or-using industries. ' e minimum wage law only puts poor more at disadvantage "ecause of lac# of employment opportunities due to ig la"or cost. ". (nemployment "ecause industries will demand less la"or c. %ost pus inflation. )ncrease in cost li#ely to "e passed to consumers especially if wage differential is maintained d. More people mig t wor# in "lac# mar#et so industries can pay "elow minimum e. *lows $o" growt "ecause industry mig t not afford cost of iring new employee and t us get more production from existing wor#ers f.