Wage Determination Semester III Chapter-3

Wages Means any economic compensation paid by the employer under some contract of employment to his worker for the services rendered by them. Basic wage is the remuneration paid or payable to employees under a contract of employment

Allowances, on the other hand, are paid in addition to basic salary benefits, etc

The following types of remuneration paid do not amount to wages under any of the act Value of any house accommodation, supply of light, etc Contribution to pension, PF

Trade Union Act, 1926  Workmen’s Compensation Act, 1923  Wage Policy in India 

1947   To ensure a living wage for workers  To ensure equitable pay for equal work Objectives of national wage policy To end equitable pay for equal work  To end exploitation and provide remuneration to capital and labour  To fix statutory minimum wages in selected industries and promote fair wage agreements in the organized sector To compensate for rise in the cost of living by linking wages with inflation and geographical area. 1947 . skills. . job responsibilities and nature of job. 1936  Industrial Dispute Act.  To provide for reasonable wage differentials to reflect differences in education.Payment of Wages Act. Industrial Truce Resolution.  To ensure equitable distribution of national income and avoiding the concentration in the hands of a few rich people.

to enquire into and report on the subject of fair wages to labour. daily or monthly wage which is sufficient to cover the necessities of worker and his family. 45 in 1999. the national minimum floor level wage was increased to Rs 80 per day for all scheduled employments from Rs 66 in 2004 to Rs. employees and the government. consisting of representative of employers. Rs.   In September 2007. 35 in 1996 . 40 in 1998 and Rs.  Three different levels are identified Living wage  Fair wages  Minimum Wage Lowest hourly.Promotion of fair wage agreements in the more organized industries. Fixation of statutory minimum wages in sweated industries   Fair Wage Committee Was constituted in 1984.

protection against ill-health. Clothing requirement should be estimated at per capita consumption of 18 yards per annum. under gov. medical. foe an average adult moderate activity.In calculating the minimum wage The standard working class family should be consist of 3 consumption unit for one earner Minimum food requirement should be calculated on the basis of net intake of calories. Fuel. In respect of housing. clothing and shelter. other misc item of expenditure should consitute 20% of the total minimum wage Children education. industrial housing scheme. light. should be taken into consideration. the rent corresponding to the minimum area provided for. requirements of essential social needs and a measure of insurance against the more important misfortunes old age . marriage. etc constitute 25% of the total minimumwage Wage Determination Process Living Wage Should enable the earner to provide for himself and his family. ( not only) the bare essentials of food. but (also) a measure of frugal comfort including education for te children.

equity and adequacy .Wage Determination Process (((((((((((Draw chart by your own))))))))) page 13 Review of organization strategy Maturity stage of organization   Line of business of the organization  Devising compensation policy  Includes criterion used for determining base and supplementary compensation Devising compensation policy Based on principles of objectivity. fairness.

 Should be able to attract competent people. retain them and motivate them. .