Wage

Wage
Ami pandya
 What is salary and wages?
• Salary is best associated with employee
compensation quoted on an annual basis.

• Wages is best associated with employee

compensation based on the number of hours worked
multiplied by an hourly rate of pay.
 Objectives of wage and salary
Administration
• To establish fair and equitable remuneration
• To attract competent personnel
• To retain the present employees
• To improve productivity
• To improve union management relations
• To improve public image of the company
 Three important methods of wage
payment
• Time Rate System:-

• Piece Rate System:-

• Incentive Wage Plan:-

 Types of wage fixation
• There are three types of wage fixation:

1.Fair wage

2.Living wage

3.Minimum wage
 Living Wage
• The normal needs of employee,
regarded as a human being living in
civilized community.
• Sufficient to insure the workmen
food, shelter, clothing, frugal
comfort, provision for evil days.
• The pauper and poverty level
• The minimum of subsistence(support)
level
• The minimum of health and comfort
level.
 Fair Wage
• “ A step towards the progressive
realization of a living wage.”
The concept of minimum
wage
• “ A minimum wage is that wage which
is sufficient to cover the bare
physical needs of worker and his
family.”
 Introduction
• Passed in 1948 to secure the welfare of the
unorganized workers in certain industries by fixing
the minimum rates of wages.
• The act empowers the appropriate Government for
fixation of minimum wages in employments
enumerated in the schedule of the act.
• The fixation of minimum of wages relates to the
industries where sweated labor is most prevalent
or where there is inevitable chance of exploitation.
wages for overtime (sec14)

• When workers works for more then

nine hrs or for 48 hrs in any week .
 Wages for less than the
normal working day(sec15)

• Where his failure of work is caused

by his unwiilingness to work &not by
omision of the employer .
Preamble to the Act
 Section 1
• This Act may be called the minimum
wage act 1948.
• It extend to whole India.
Section 2:Interpretation
• (a)Adolescent (14-18)
• (aa)Adult
• (b)Appropriate Government
– Central and state govt.
• (bb)Child ( below 14)
• (c) Competent Authority
• (d) Cost of living index
• (e) Employer
• (f) Prescribed
• (g) Scheduled employment
• (h) Wage
 Section :3 Fixing rates
of wages
• Minimum time rate
• Piece of work
• Guaranteed time rate
• Overtime
 Section 4: minimum rate
of wage
• According to section 2(h) following
items can not be refer to check
minimum wage.
– The value of any house, Accommodation,
Supply of light, water, medical care
allowances.
– Pension fund or provident fund or social
insurance
– Travel allowance
– Gratuities
Procedure for fixing and
revising minimum wages
• Section 7: Advisory Board
• Section 8:Central Advisory Board
• Section 9: Composition of committees
• Section 10:Correction of errors
• Section 11: Wages in kind
 Section 13: Fixing hours
for a normal working day.
• With regards of appropriate
government
– Fix the number of hours of work which
shall constitute normal working day,
inclusive of one or more specified
intervals.
• Provide for a day of rest in every
period of seven days which shall be
allowed remuneration in respect of
such days of rest.
 Section 14: Over time
• Adult 9 hour
• Child 4 ½
 Section 16:
• According to classes
 Section:17
• Piece of work (according to time
payment)
 Section:18
• Maintenance of registers and
records.
– Overtime
– In and Out time
– Quantity of work
• Section 19: Inspector
• Section 20: Claim
• Section 28: Power of Central
government as to the carrying in to
execution of this act in the state