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Definition of Wage
Wage refers to payment for labor service of monetary remuneration, payable to a worker, computed on hourly, daily, weekly, or piece work basis. A fixed weekly or monthly wage is usually called a salary. The wage is the portion of the national product that represents the aggregate pay for all contributing labor or service as distinguished from the portion retained by management or reinvested in capital goods.
Now-a-days, the term fringe benefit is not in regular use, which traditionally indicates to separation/marginal benefit. In some extent, its textual meaning and practical applications create confusion about its coverage and includable items. So, as a more general term, it is better to use benefit or allowance instead of fringe benefit. For Class Room Use Only/1
Fair Wage A general definition of fair wages refer to- Company practices that lead to sustainable wage developments. And an extended definition of fair wages refer to- Wage levels and wagefixing mechanisms that provide a living wage floor for workers, while complying with national wage regulations (such as the minimum wage, payment of wages, overtime payments, provision of paid holidays and social insurance payments), ensure proper wage adjustments and lead to balanced wage developments in the company (with regard to wage disparity, skills, individual and collective performance and adequate internal communication and collective bargaining on wage issues). A fair wages is a wage adjusted according to the local market and industry. A fair wage lies between the minimum wage and the living wage which is the goal. Wages must be paid on an industry wise and region basis having due regard to the financial capacity of the unit.
In practice, this price index is often expressed as a percentage by multiplying the formula above by 100. The most commonly used price index is the Consumer Price Index (CPI). The basket of goods used for the CPI is determined by the mix of goods consumed by a typical family of 4 in selected Standard Metropolitan Statistical Areas (SMSAs). The specific mix of goods is determined from the Consumer Expenditure Survey.
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(Note: that the price index is not measured as a percentage in this calculation.) In general, economists assume that individual workers and firms respond to changes in real wages and not nominal wages. Workers are concerned with the purchasing power of their wage over time, not just the number of dollars they receive.