A prevailing wage is the median wage paid to workers in a specified locality.
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Scope
Prevailing wage may include both wages and benefits. It incompasses the compensation for a worker given for performed labor.
Application
USA
In the Davis-Bacon Act all federal government construction contracts, and most contracts for federally assisted construction over $2,000, must include provisions for paying workers on-site no less than the locally prevailing wages and benefits paid on similar projects. In the Walsh-Healey Public Contracts Act the federal government set the minimum wage equal to the prevailing wage in an area.
See also
- Wage
- Compensation of employees
- Employee benefit (non-monetary compensation in exchange for labor)
- Employment
- Labour in Economics
- Living wage
- Labor power
- Wage labour
- Wage share
- Wage slavery
- Working class
