Wage policy and wage regulation machinery

Payment of wage on due date without unauthorized deductions.for the purpose of achieving specific objectives of social and economic policy.Resolving wages related issues by collective bargaining . In other words “wage policy” refers to the government action undertaken to regulate the level or structure of wage or both . 5.Equal pay for equal work 2.To compensate for the rise in cost of living. 4. 3.Wage policy –definition Wage policy are the principles acting as guidelines for determining a wage structure. .Living wages for all workers so that they led a decent life. In India it is built around certain cardinal principles : 1.

• Maximum income security for all section of community.The capacity to pay . • Protection from inflation • The incentive for workers to improve performance. • The establishment of fair labor standards .equitable wage policy for various employees without significant wage difference . . SOCIAL OBJECTIVES OF ECONOMIC POLICY • Elimination of exceptionally low wage.Ensuring a fair. • The highest degree of economic stability consistent with an optimum rate of economic progress. 6.5. ECONOMIC OBJECTIVES OF WAGE POLICY • Full employment and optimum allocation of all resources.

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LIMITATIONS OF WAGE POLICY • • • • Socio-economic set up of our society. Lack of unity among unions. Price rise almost beyond government regulatory capacity. Disparity in distributing wages. .

It is a tripartite body representing management. . COMPOSITION OF WAGE REGULATION BOARDS Wage regulation boards basically composed of three parties.WAGE REGULATION MACHINERY NEED OF WAGE REGULATION : • To protect workers from exploitation. Government plays a role of mediator. Equal no of representatives selected by the government and they sort out wages related issues. • For the development of the economy • To ensure a minimum wage for the workers . workers and government.

• Work out a wage structure based on the principles of fair wages formulated by the committee on fair wages. .FUNCTIONS OF WAGE REGULATION BOARDS • Determine which categories of employees (manual.supervisory etc) are to be brought within the scope of wage fixation.clerical. • Suggest a system of payment by results • Work out the principles that should govern bonus to workers in industries .

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