Under the conditions of advanced capitalism minimum wage is the statutory lowest boundary for remuneration that is directly relevant for a small group of people who are not protected by the other components of the system. In developmental context, however, firms do not exactly comply with minimum wage but it may still act like a lighthouse (beacon) positively affecting all wages across both formal and informal sectors even without being effectively enforced. Consequently, vast majority of population may be influenced by minimum wage dynamics. Therefore while under the conditions of advanced capitalism the name and nature of minimum wage coincide, in developmental context this is no longer the case. Although its name remains the same its nature is different: it is neither minimum nor wage but a signal that may become the reference price for the fair value of labor across entire economy. This suggest that minimum wage and people’s sense of fairness may be linked. The research has been overlooking these peculiarities and analyzing minimum wage in developmental context on the basis of assumptions derived from the conditions of advanced capitalism. This approach makes us overlook interesting dynamics triggered by minimum wage across “developing” countries. I propose a new approach to minimum wage that would recognize its different nature in developmental context and would scrutinize its role in legitimation dynamics and its relationship with social cost of labor. This approach would open new avenues for research and prevent us from asking wrong questions.

The Minimum Wage Question A Note by V.J.K.Nair, CITU All India Working Committee Member and General Secretary, Karnataka State Committee, Bangalore Submitted to CITU Centre

The purpose of this study is to assess the methodologies and practices that are used to set minimum wages and the indicators that need to be taken into account, with the aim of informing the process and dialogue between stakeholders in Kosovo on setting the minimum wage. In no way does this study aim to recommend a certain level or method of setting the minimum wage, as this can only be a product of the dialogue between stakeholders. The main aim is to illustrate key considerations to have in mind while going forward on a decision on the methodology and to highlight the overall policy and socio-economic implications of any policy changes in the context of Kosovo.

Minimum Wage has a broad implementation in the number of countries, and is one of the main of the policies against the discrimination in labor market. Minimum wages are usually established by the government or they may come as part of collective bargaining contract. Minimum wages try to protect employees in receiving the compensation in order to be able to meet the expense of basic needs in living. According to the ILO Minimum Wage Convention No. 131 it is emphasized that elements in determining the level of minimum wages conditions should take in consideration basic needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups. Mainly this way Minimum Wages should be determined and implemented when there is a possibility and depending on the relation to each countries national practices. Minimum wages have different dimensions and the comparison of some of South Eastern European countries which will be the main subject of this paper, with the main emphasis of implementation of Minimum Wages in countries that are still in transition. We found that there are some improvements regarding labor protection since the introduction of the minimal wages.