In the present days, most of the companies are paying high salary to their employees. Some believe that this good for the country while others think that governments should limit the salary to a certain level. This essay outlines both views along with my opinion.
High salaries are benefical for the country because government get more tax from individuals. When an individual is paid more, he must pay more tax to the government. As a result, income for the government increases, which promotes growth in the basic infrastructure of the country such as good transportation facilities, health care and so on. For instance, the countries which provide high salaries also provide a high living standard for the citizens.
However, government should limit the salaries because high payments to a small number of people result in income inequality which causes the huge pay gap between the highest and lowest earners and by introducing a maximum wage, it can help to reduce this difference. This positive change can make employees feel more motivated to work harder because of the fair payment. Researches show that when the gap between the payments of the employees are reduced, more motivated the employees are.
In conclusion, my opinion is instead of spending a huge sum on salaries, companies can use that money to invest other crucial aspects, such as marketing or researching and developing products which may make significant contributions to companies’ profit.