What term describes the amount that firms are legally required to pay their workers?

The term that describes the amount firms are legally required to pay their workers is the National Minimum Wage. This concept is established by law in many countries to ensure that all workers receive at least a basic level of income for their labor, safeguarding them from exploitation and providing a minimum standard of living.

The National Minimum Wage is applicable to all eligible workers, regardless of the industry they work in, and serves as a benchmark for minimum compensation. It is regularly updated to reflect changes in the cost of living, ensuring that it remains relevant and effective in protecting workers' rights.

In contrast, the Living Wage is often considered to be a more generous payment reflective of the actual cost of living but is not legally mandated, making it distinct from the National Minimum Wage. Fair Wage and Industry Standard Wage pertain to concepts that may not be dictated by law and can vary significantly depending on the sector and the practices of individual companies.