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Institutions Related to Compensation

Wages Board


What is Wages Board?

oA committee who determine the fair wages
oBased on industry cum region
oTo provide better climate for industrial relations
oTo standardize wages structure in the industry
oIn accordance with the social and economic policy
of the government
oTripartite in nature

Growth and Development of

wages board
Industrial dispute act was enacted under which wages regarding
disputes could be settled through adjudication
The parties were not satisfied with that ,thus the idea of setting up
a triplicate wages board was mooted and endorsed in first plan
The second plan determine wages through industrial wages
Headquarters of wage board will be in New Delhi

It consists of equal representative of employers and

workers and an independent chairman for a
acceptable decision

First wages board was set up in cotton textiles and

sugar industries

Scope of wages board

Improve conditions for better industrial relations in the

Standardize wages structure uniformly across

a given industry

Pave the way for wages settlement in consonance social

and economic policies

Functions of wages board

To determine the wages payable to employees

To appropriate government or the organizations of employers and

employees by mutual agreement

Determination of other matters regarding disputes between two parties

Hours of works etc.

Composition of wages board

It is a triparties representing the interest of labor
,management and the public

Labour and management representatives are maintained

in equal numbers by the government

These board are chaired by government nominated

representing the public

Regulated acts by wage

The Payment of Wages Act 1936
The Minimum Wages Act 1948
The Industrial Disputes Act 1947
The Payment of Bonus Act 1965
The Equal Remuneration Act 1976

Factor affecting wage board

Need based minimum wages
Industrys capacity to pay
Productivity of labour
Prevailing rates of wages
Various wage legislation
Level of income and its distribution

Place of the industry in the economy

Needs of industry in a developing economy
Requirements of social justice
Need to provide incentive for improving productivity

Time consuming (long time in completing their task)
Majority of recommendations are not unanimous
Recommendations are not fully implemented

The National Commissions give following

measures for effectiveness of wage board
Required to submit recommendation with in year
Unanimous recommendations should be made
statutorily binding
Recommendations should remain in force for five
year period
Manual procedure should be prepared

Thank You

Made By:Ritu Aggarwal

Reenu Khatana
MBA(3rd Sem)