Fair Wage Theory

Fair Wage Theory suggests that workers should be paid wages that reflect the true value of their contributions, skills, and effort. It emphasizes that wages should be just enough to meet workers’ needs and ensure fair compensation, fostering motivation and reducing exploitation. By paying fair wages, employers can improve employee satisfaction, productivity, and loyalty, leading to better overall organizational performance. The theory highlights the importance of balancing profitability with social responsibility, promoting a fair and equitable distribution of income within the workplace.