Professional Documents
Culture Documents
A wage is a compensation, usually financial, received by workers in exchange for their labor.
Compensation in terms of wages is given to workers and compensation in terms of salary is given to
employees. Compensation is a monetary benefit given to employees in return for the services provided
by them.[ ] Etymologically speaking Wage is derived from words which suggest making a promise,
often in monetary form. Specifically from the Old French word wagier or gagier meaning to pledge or
promise, from which the money placed in a bet (wager) also derives. These in turn may derive from the
French gage to wager, the Gothic wadi, or the Late Latin wadium, also meaning a pledge.[ ][ ]
A minimum wage is the lowest hourly, daily or monthly wage that employers may legally pay to
employees or workers. Equivalently, it is the lowest wage at which workers may sell their labor. [ ]
In a developing country like ours which faces the problem of unemployment on a very large scale it is not
unlikely that labour may offer to work even on starvation wages. The policy of the act is to prevent
employment of sweated labour in the general interest and so, in prescribing minimum wages rates, the
capacity of employer need not be considered as the state assumes that every employer must pay to the
minimum wages for the employees labour.[ ]
The concept of Minimum Wages was first evolved by ILO in 1928 with reference to remuneration of
workers in those industries where the, level of wages was substantially low and the labour was
vulnerable to exploitation, being not well organised and having less effective bargaining power. The need
for a legislation for fixation of minimum wages in India received boost after World War II when a draft
bill was considered by the Indian Labour Conference in 1945.
On the recommendation of the 8th Standing Labour Committee, the Minimum Wages Bill was introduced
in the Central Legislative assembly on 11.4.1946 to provide for fixation of minimum wages in certain
employments. The Minimum Wages Bill was passed by the Indian Dominion Legislature and came into
force on 15th March, 1948. Under the Act both State and Central Government are Appropriate
Governments for fixation/revision of minimum rates of wages for employments covered by the Schedule
to the Act.[ ]
A tripartite Committee Viz., The Committee on Fair Wage was set up in 1948 to provide guidelines for
wage structures in the country. The report of this Committee was a major landmark in the history of
formulation of wage policy in India. Its recommendations set out the key concepts of the living wage,
minimum wages and fair wage besides setting out guidelines for wage fixation.
Article 39 states that the State shall, in particular, direct its policy towards securing (a) that the citizen,
men and women equally shall have the right to an adequate livelihood and (b) that there is equal pay for
equal work for both men and women.
Article 43 states that the State shall endeavour, by suitable legislation or economic organization or in any
other way, to give all workers, agricultural, industrial or otherwise, work, a living wage, conditions of
work ensuring a decent standard of life and full enjoyment of leisure, and social and cultural
opportunities.[ ]