Minimum wage is defined as the least pay rate which is paid by employers to
employees and it can be calculated in terms of hours, days or months. The
minimum wage policy had long been practiced in the developed countries such
as New Zealand, Australia, United Kingdom and United States. The advantages
and disadvantages of minimum wage policy are discussed and analysed in this
research. The research studies the historical development and origin of
minimum wage policy in developed countries, followed by the definition and
general types of minimum wage. The method of study implemented in the
research is systematic literature review to determine the key scientific
contributions of a particular area. The research enables readers to better
understand about the history and origin of minimum wage in the developed
countries and implementation of minimum wage in Malaysia. Next, the research
displays the minimum wage rates in the major countries in the world followed
by the inflation rate and consumer price index (CPI) in Malaysia. The
Malaysian government has to proceed with its implementation of minimum wage
to generate an accurate conclusion over its feasibility. Therefore, the feasibility
of minimum wage policy in Malaysia will be further researched.
