Abolishment of minimum wages does not mean that there is no set system of wage payment. In the countries mentioned below, there are some robust union memberships in place and the standards are set by them through the process of collective bargaining. Every industry requires a different skill set and effort. Hence, it varies across the various kinds of jobs. Here are the countries that do not have any legal minimum wage requirement.
Sweden is foremost in foregoing the minimum wage. But it is to be noted that the Nordic model is not a free market. Minimum wages are set by collective bargaining. There are close to 110 trade unions that the Swedish citizens belong to. There is a work limit of 40 hours per week. They are more generous holiday-wise as well.
The relationships between the employers and workers are peaceful due to no mandated minimum wage. The base bay is reasonable and decided post negotiations with the trade unions.
Iceland is infamous for its scenic beauty. Apart from that, it ranks the highest as the happiest nation in the world. They have low crime rates, high wages and lead a fairly healthy life. People enjoy retiring early there. The employees in Iceland are enrolled into the various relevant trade unions that negotiate the baseline salary on their behalf.
Norway too has forgone the minimum wage requirement. The perks of their work-life are great job security, good vacation time, and healthy wages. Even the unskilled workers earn a decent minimum wage which is prone to increase depending upon their skill level.
All the Swiss voters collectively approved a minimum wage across all industries. The Swiss even rejected the proposal for a minimum wage requirement. They were extremely vocal in keeping away the government’s interference in their work lives. All the salaries are fair and their unemployment rate is minimal at 2.4%. They also boast of the best living standards in the world.
The concept of minimum wage is deep-rooted across many leading countries. Job is important to everyone. Citizens look to be less tied up with the government rules and prefer some control over their work-life. The ideal way to go about it would be to cut down on the interference of the government with free markets and let the people decide their own rates. In fact, abolishment of minimum wages has helped the citizens lead a healthier and happier life, thereby leading up to a better work-life balance.