What is the predominant wage?
The prevailing wage is a wage that reflects hourly wages, benefits and overtime paid to people working in similar industries in a particular region. The prevailing wages are usually based on data collected on people who work in the main metropolitan area in a certain region or province. This data is used to determine wage requirements and more generally to collect information on remuneration rates in various fields. This information is collected by a government agency that solves problems with work and employment, and is compiled in a large database that can be used for comparison. The predominant wage in a particular area often reflects living costs and demand for specific types of work.
Some nations have a predominant wage law to protect workers. According to such laws, people must be the predominant wage for their type of employment. Foreign workers must be offered the predominant wage under the conditions of their work visa according to suchKona. This requirement is designed to prevent companies from hiring foreign workers to avoid paying the predominant wage, thereby reducing costs.
Information about the prevailing wage rate can be obtained directly from government employment agencies. Usually there is a table that shows high and low wages in a certain industry and an average wage range. Detailed statistics that greatly decompose tasks are very common. For example, rather than just maintaining information on "construction", prevailing wages for carpentry, installation of pipes, plumbing, laying bricks, electricians, etc.
In the regions where the predominant wage law applies, employers may be obliged to submit a prevailing schedule that calls them the predominant wage for the types of employees they deal with. It may also be necessary to fill in the prevailing wage form for each new project that enters the employee's informationand their level of compensation.
Falsification data on prevailing wage forms can lead to serious legal consequences. Government agencies can question people who present dubious forms, as well as trade unions. Many trade unions use wage transparency as a tool and tend to oversee the prevailing information about wages in the interest of the protection of their members.