Wage policy refers to the guidelines and regulations that govern how wages are determined and adjusted within a labor market. It encompasses various factors, including minimum wage laws, collective bargaining agreements, and government interventions aimed at ensuring fair compensation for workers. Effective wage policies can help reduce income inequality and promote economic stability. Governments and organizations often implement wage policies to address issues such as inflation, cost of living, and labor market conditions. By setting standards for pay, wage policies aim to protect workers' rights and ensure that they receive a fair share of the economic output, contributing to overall social welfare and economic growth.