Wages

Questions to be answered
What is wage?
What are the types of wages?
What are the theories of wages?
How the wages are determined?
What is minimum wage?
What is the effect of minimum wage?
What is the importance of minimum wage?
How minimum wage effects the Economic welfare of the labour?
What is the role of Union in fixation and raising the minimum wage?
Whether minimum wage has any relation with Economic justice of the labour?
What is the structure of minimum wages in India?
What is the situation in India regarding the enforcement of minimum wage criteria?
Contents
Introduction
Wages
Types of wages
Theories of Wages
Wages determination
Wage differentials
Structure of Minimum Wages
Fixation of Minimum Wages
Issues of Compliance
Enforcement and Implementation of Minimum Wages
Meaning of Wages
 Wages are a payment for the services of labour, whether mental or
physical.
Though in ordinary language an office executive, a minister or a
teacher is said to receive a salary; a lawyer or a doctor a fee; and a
skilled or unskilled worker a wage,
yet in economics no such distinctions are made for different services
and
all of them are said to receive a wage.
In other words, wages include fees, commissions and salaries.
It is another thing that some may be receiving more in the form of
real wages and less in terms of money wages and vice versa.
 We shall refer to this problem later on.
Types of Wages:

(i) Time and Piece Wages

(ii) Money Wages and Real Wages
(i) Time and Piece Wages:

Time wages-
Wages may be paid weekly, fortnightly, or monthly and partly at the end of the year
in the form of bonus.
 But the bonus may be a task wage if a work is finished within a specified period or
before that.
Sometimes, time wages are supplemented by wages earned by working extra time.
They are over-time wages.

Piece wages-
Wages are also paid in accordance with the amount of work done, say in a shoe
factory or a tailoring department as per one pair of shoes or pants manufactured.
If the rate per pair of shoes or for pants is Rs 50, a worker will be paid according to
the number of pairs of shoes or pants manufactured.
(ii) Money Wages and Real Wages:
Money wages or nominal wages relate to the amount of
money income received by workers for their services in
production.
Real wages include the various facilities, benefits and
comforts which workers receive in terms of goods and
services for their work.
 These are in addition to the money wages of workers.
The Pay and Its Determinants
1.) EMPLOYER ABILITY TO PAY
2.) Productivity
3.) EMPLOYER WILLINGNESS TO PAY
4.) Comparable Wages
5.) Cost of Living
6.) Labor Supplies
Real wages depend upon the following factors-
a. Price Level
b. Money wages
c. Regularity of Work
d. Nature of Work
e. Future Prospects
f. Extra Benefits
g. Trade Expenses
h. Social Prestige
i. Form of Payment
j. Conditions of Work
Real wages depend upon the following factors.
a. Price Level:
The purchasing power of money depends upon the price level. When the price level
rises, the purchasing power of money gets reduced, thus adversely affecting the
real wages of workers. Every increase in the price level reduces the purchasing
power of money. This leads to a fall in the real wages of workers.
b. Money wages:
The size of the pay packet received by the worker is an important determinant of
his real wages. The greater the money wages, the greater will be the real wages,
other things remaining the same.
c. Regularity of Work :
A permanent job, even though it carries a smaller money income, is considered to
be better than a temporary job which may yield high reward in terms of money.
d. Nature of Work:
The nature of work also plays an important role in determining the level of real
wages. Some jobs are pleasant, while others are not.
Similarly, some occupations are enjoyable while others are disagreeable.
All these considerations have to be given weightage in determining real wages.
e. Future Prospects:
An occupation carrying the promise of better prospects of promotion in the future
is considered to be better than the one which does not do so, even though the
money wages offered by the latter may be high.
f. Extra Benefits:
In some occupations, employees receive in addition to their pay, some extra
benefits. For example, the manager of a firm gets in addition to his pay, a well-
furnished bungalow, free medical help etc. Such benefits increase the real wage of
a worker.
g. Trade Expenses:
This refers to the expenses one has to incur in the course of one’s occupation. These expenses are
high in some occupations while in others they may be moderate. These expenses should be deducted
from the money income in order to arrive at the real wage.
h. Social Prestige:
The real wages of employees engaged in prestigious occupations are high as compared to the real
wages of employees working in ordinary occupations.
i. Form of Payment:
Real wages are influenced by the form of payment. Generally, workers are paid money wages. But in
certain occupations, in addition to money wages, workers receive subsidized ration or free lunch, and
living quarters. All these facilities increase the real wages of workers.
j. Conditions of Work:
Conditions of work also affect real wages. In some cases, it is found that conditions of work are not
congenial and they adversely affect their health. In such cases, the real wages of workers are low.
 Theories of Wages:
(i) The Subsistence Theory of Wages
(ii) The Standard of Living Theory of Wages
(iii) The Wage Fund Theory
(iv) The Residual Claimant Theory
(v) The Marginal Productivity Theory of Wages
 The Modern Theory of Wages
The wage rate, like any price, is determined by the demand for and
supply of labour.
it is a point where the cost of employing labour (the wage rate) equals
the marginal revenue product of the labour to the employer.
For full equilibrium, it is essential that marginal revenue product of
labour should equal its marginal cost (marginal wage) and the average
revenue product be equal to the average cost of labour (average wage).
AW = MW
... and MRP = MW
ARP = AW
... MRP = MW = AW = ARP
 Union and Wages – Collective Bargaining
The main function of a trade union is to raise wages and to
improve the working conditions of its members.
It replaces individual bargaining by collective bargaining and
makes the rates of wages uniform for the same category of
workers over the entire industry.
Under perfectly competitive labour market, wages in a
particular industry are fixed by the forces of demand and
supply.
But unions can raise wages in the short-run by reducing the
supply of labour.
This is illustrated in Panels (A) and (B) of Figure 6.
Panel (A) shows the equilibrium wages rate OW being determined by
the equality of demand and supply of labour OE at point a.
in Panel (B), at a given wage rate OW or WS the firm employs Oe units
of this labour.
If the workers employed in this industry form a union, they cannot
affect the demand for labour in the short-run.
They may demand a wage rate above the equilibrium rate OW but it will
tend to reduce the number of workers employed.
Suppose the union asks for OW1 wage rate.
This will tend to make the supply curve of labour perfectly
elastic so that it now becomes W1S1 in place of SS in Panel
(A).
The new equilibrium position is established at n where the
demand curve D intersects the supply curve W1S1 and the
number of workers employed in the industry is reduced
from OE to OE1
The given wage rate for the firm being W1S1 it will also
employ less workers than before, Oe1 < Oe as shown in
Figure 6 (B).
If the union wishes to maintain the increased wage
rate,
it will have to reduce the supply of labour, It may
do so in a variety of ways:
by encouraging the unemployed to seek jobs in
other industries;
by raising the membership fee for new entrants;
by raising the apprenticeship period and
by encouraging restrictions on immigration, etc.
Above all, the reduction in supply will depend upon the
elasticity of demand for labour. If the demand for labour is
quite inelastic, then the reduction in supply would be small.
But this is not likely to be the normal situation in the case of
an industry.
If somehow the union is able to shift the MRP curve (demand
curve for labour) upward to the right, the wage rate would
be raised substantially and the employment would also
expand. But to raise the demand for labour is not an easy job
for the unions. This is possible over the long-run when
technological changes raise the demand for the industry’s
product.
The union can then demand a wage increase, the rise being
negotiated by collective bargaining.

Marshall has conceived of certain situations when the union

of a particular group of workers can raise the wages of its
members by threatening to withdraw their supply.
It is possible if:
(i) The demand for the services of that set of workers is inelastic; or

(ii) The demand for the commodity which the group helps to produce is
inelastic; or

(iii) The wage-bill of this group forms a very small proportion of the
total wage-bill of the concern so that a rise in their wages does not
substantially affect the total cost of production of the commodity; and

(iv) lastly, if the other cooperate factors are squeezable, that is, the
wages of the other group of workers are reducible or the raw material
suppliers are forced to accept low prices, etc.
The union will be successful if any of these conditions is
fulfilled. This is only possible in the short-run.

In the long-run, the employer may try for substitutes by

adopting a device to replace this group of workers.
In a perfectly competitive labour market, wages are paid equal to the
marginal revenue product of labour.

But competition is not perfect and labour is paid much below the
marginal revenue product.

A trade union can raise wages up to the marginal revenue product level
by collective bargaining.

A rise in the wage rate which equals the marginal revenue product of
labour would neither affect employment nor output adversely.

Assuming that the employers are not united a powerful trade union can
force the industry to pay wages equal to the marginal revenue product. In
such a situation, it is difficult to import even the ‘Black-legs’.
In the case of a monopolist buyer of the services of labour, the
workers will be paid less than their marginal revenue product
and even the number of workers employed will be much
smaller than the under perfectly competitive labour market.

In Figure 7, OE quantity of labour is employed at OW wage rate

by the monopolist, as against OE1, quantity of labour at
OW2 wage rate if there were perfect competition in the labour
market.
If the workers are organized, their union through collective bargaining can raise
the wage rate to OW2 and at the same time increase employment to OE1 up to the
competitive market level C.

But if the union tries to push up the wage rate above OW2 employment will fall.

If the union follows the ‘closed shop’ policy and does not bother about increasing
the level of employment, it can at best raise the wage rate to OW1.

But employment will be reduced from OE1 to OE.

It means that the trade union has a monopoly in the selling of the services of
labour and aims at destroying monopolist exploitation by asking for OW1 wage rate.

This is the case of bilateral monopoly.

 Wage Differentials
The causes of these various types of wage differentials are
numerous:-
A. Smith’s Reasons
B. Non-Competing Groups
C. Non-Equalizing Differences
D. Equalizing Differences
E. Geographical Differences
F. Market Imperfections
Wage Differentials
There are wide differences in wages received by individuals from
occupation to occupation, from industry to industry, from district to
district and from region to region within a country.
International wage differences are, however, the greatest.
Why is it that a college lecturer with pleasant work, long vacations and
interesting students receives more pay than a bus driver’s nerve-
straining back-breaking and tiresome job?
Why is it that an agricultural labourer receives a lower wage per hour
than a coal-miner, a factory worker at Cochin receives less than a
worker in Chennai, and a worker at Faridabad gets a lower wage, than
a worker at Mumbai?
The causes of these various types of wage differentials are numerous.
A. Smith’s Reasons: Assuming labour of the same efficiency and
perfectly, mobile between occupations and places, Adam Smith
assigned five reasons for wage differentials.
(1) “The agreeableness or the disagreeableness of the employments
themselves” is the main cause of variations in wages. People are
prepared to accept a low paid job which is pleasant and light as against
a tiresome and dirty job which offers more pay.
(2) “The easiness and cheapness or the difficulty and expense of
learning them.” Occupations which are easy and cheap to learn carry
low wages as against those which are difficult, more expensive and
take more time to learn. The wages for the services of lawyers,
physicians and engineers are higher as compared with other
occupations.
(3) “The constancy and inconstancy of employment in them.” Jobs of a
temporary nature carry higher wages than those which are
permanent. A factory worker earns less per day as against a mason,
for the latter gets work only for a part of the year.
(4) “The small or great trust which must be reposed in those who
exercise them.” Persons in whom greater trust or responsibility is
reposed are paid higher wages than the ordinary lot. That is why the
wages of goldsmiths, jewelers and managers are very high.
(5) “The probability or improbability of success in them.” Smith pointed
out that where success is uncertain, wages must be high. But despite
the risk of failure involved in the legal profession, many persons are
attracted into it, but their real earnings are low if we were to take into
account the period involved in becoming successful.
The above causes of wage differentials, as given by Adam Smith, are
applicable to a society where full employment exists.
But in the world we live, there is neither full employment nor perfect
mobility of labour. Labour is not homogeneous.
Men differ in efficiency and so do their wages.
Actual wage differentials, thus, run counter to Adam Smith’s
explanation:
the janitor with the most unpleasant work is among the lowest paid
members of the community and so is a casual labourer, to cite a few
instances.
In this world, where imperfect competition is the rule, the real causes
of wage differences are to be found in the following factors.
 B. Non-Competing Groups:
There are certain occupational groups in which the supply of labour is limited because all and sundry
cannot enter them. It is not easy to pass from one group to another.
Prof. Taussig distinguished five distinct groups:
(i) The unskilled workers like ordinary labourers who carry earth, sand or bricks in construction
work;
(ii) The semi-skilled workers like those who can mix sand and cement in the required proportions;
(iii) The skilled workers who require special training and skills, like the mechanic, the locomotive
driver, the plumber;
(iv) The clerical workers who possess some minimum academic qualification; and
(v) the professional group such as the lawyer, the teacher, the physician, the actor and the manager.
There is limited competition among the first three groups.
An unskilled worker can become semi-skilled within a few months and
the semi-skilled can be a skilled worker by acquiring some education and training.
 C. Non-Equalizing Differences:
But the real difficulty starts when we move to the fourth and fifth groups.
Carpenters cannot enter the teaching profession.
A clerk cannot become the manager of a concern.
For movement from a lower group to a higher group requires exceptional ability long and costly
education and training.
Even within groups there are non-competing groups.
An administrative officer cannot fill the post of a nuclear physicist.
The existence of non-competing groups is due to social stratification, family environment, differences
in ability, financial position and opportunity.
The son of a petty shopkeeper can become a surgeon or an engineer if he has the ability and enough
money to support him during his academic career.
But such cases are rare.
Generally, children belonging to workers in the first three groups have little chance of going up the
ladder in the fourth and the fifth groups due to their family set-up.
 D. Equalizing Differences:
Such wage differences exist among jobs for which people from the same group
are eligible.
Within each group some jobs are more pleasant and secure while others are
strenuous and dangerous.
Very few people are willing to enter the latter.
So higher wages are paid to attract workers.
In the pleasant job, there are many entrants and they are paid comparatively low
wages.
A college lecturer earns less than a doctor.
The higher earnings of the doctor compensate him for longer and often irregular
hours of work and for the more expensive and strenuous period of training
undergone as compared to the lecturer.
Such wage differentials are ‘equalizing differences’ for they tend to equalize the
non-monetary differences existing in the job belonging to the same group.
 E. Geographical Differences:
There are the geographical wage differentials which are, in fact, due to industrial
and occupational differences.
In examining geographical wage differences, we are concerned with real wages
and not with money wages.
Money wages are generally low in rural areas than in cities.
But the living is also less costly there, so real wages may be the same in both
areas.
Besides the differences in the cost of living between rural and urban areas, there
are other factors responsible for their wage differentials.
The ruralites are unskilled and unorganised workers whereas in the cities
workers are mostly skilled and organised into trade unions.
Moreover, the regular sources of labour supply of the cities are the ruralites who
must be offered higher wages to attract them.
 F. Market Imperfections:
The main cause of rural-urban and regional wage differentials lies in market
imperfections.
Inertia, family and familiar associations, attachment to land and property keep the
worker tied down to one place.
The cost of movement, the fear of adjusting one’s self to new surroundings the fear
that one may not be a success in the new occupation, the risk in surrendering
seniority and chances of promotion in the existing occupation are some of the
considerations, which make the workers reluctant to leave the present job.
Often workers are ignorant of better job opportunities.
There are also discriminations on the basis of race, sex and age which hinder
mobility of labour.
Last but not the least, certain unions follow the closed-shop policy. This does not
mean that wage differentials exist due to market imperfections.
Introduction Minimum Wages
•With rising wage inequality, the introduction of a legal minimum wage
has become an important policy issue in many countries
•In countries with an expanding low wage sector, a minimum wage
prevents ‘unfair’ competition
•Earnings of people working full-time should be sufficient to cover at
least the basic minimum. For this, a minimum wage is a means to
prevent the emergence of the so-called ‘working poor’.
•Minimum wage in some countries are not only for setting wages at the
bottom of the wage pyramid, but also for higher paid workers whose
wages are set at multiples of the minimum
•Minimum wages could contribute to the reduction of poverty and
inequality by increasing the incomes of those affected by the legislation
• Structure of Minimum Wages in India
The Minimum Wages Act (1948) – lays down wages for all categories of workers –
applicable for both formal and informal sector provided the industry is enlisted
under the Schedules of the Act
• No specific criteria for fixing minimum wages - fixed by both Central and State
governments – multiple rates of minimum wages for different employments in
each state
• Wide range of institutions influence mechanisms for fixing minimum wages in
India – Pay Commissions, collective bargaining, Industrial Wage Boards
• There is a non-binding national minimum wage floor but no legally binding
national minim wage
• The number of scheduled employment has increased over the years; presently,
the Central government sets minimum wages for 48 different categories of
scheduled employments and the state governments set wages for 1,679 job
categories making a grand total of about 1,727 different minimum wage rates in
India.
• Revisions made to state-level minimum wages over time are adjusted to
inflation; it is however not known if they are any other economic factors that
influence these adjustments
Fixation of minimum wages in India
Comparing Minimum Wages with Actual Wages

• The minimum wages fixed are often less than

the average wages prevalent in the market

• The rise in real wages for casual workers was

initially slower than the rise in minimum wages;
post 2004-05 however, the rise in real wages was
significantly higher than the minimum wages
Enforcement and Implementation of Minimum Wages
• Large proportion of wage workers legally covered by the
Minimum Wages Act are, in reality, paid wages less than
the minimum wage levels
• Non-compliance continues to be an important problem
in India
• Rates of non-compliance are higher among the low
skilled workers, women workers and socially vulnerable
groups.
• The complexity of the minimum wage system in India,
with multiple rates, poor levels of enforcement and
inspection has rendered minimum wages ineffective as a
labour market instrument
The Committee on Fair Wages defined three
different levels of wages viz;

(i) Living wage

(ii) Fair wage
(iii)Minimum Wage
1.3.1 LIVING WAGE:
The living wage, according to the Committee, represented the highest level of the
wage which should enable the worker-
to provide for himself and his family not merely the basic essentials of food,
clothing and shelter
 but a measure of frugal comfort including
education for children,
protection against ill health,
 requirements of essential social needs and
a measure of insurance against more important misfortunes including old age.
 But the Committee felt that when such a wage is to be determined, the
considerations of national income and the capacity to pay of the industry
concerned has to be taken into account and the Committee was of the opinion that
living wage had to be the ultimate goal or the target.
 1.4 FAIR WAGE:
1.4.1 The Fair Wages Committee in this connection observed :
the objective is not merely to determine wages which are fair in the
abstract,
but to see that employment at existing levels is not only maintained,
but if possible increased.
From this point of view,
it will be clear that the levels of the wages should enable the industry
to maintain production with efficiency.
The capacity of industry to pay should, therefore, be assessed by the
Wage Boards in the light of this very important consideration.
1.4.2 The Fair Wages Committee also recommended that
 the fair wage should be related with the productivity of labour.
In this connection it may be said that in India since the existing level of wages is
unable to maintain the workers on subsistence plus standard,
 it is essential that the workers must be first assured a living wage and only after
this minimum has been done,
 the wages should be related to the productivity.
 The Committee further recommended that-
the fair wage should be related with the prevailing rates of the wages,
though in view of unduly low wages prevailing even in organized industries in the
country,
it laid that the wage fixing machinery should,
therefore, make due allowance for any depression of wages caused by unequal
bargaining.
1.4.3 With regard to the machinery to be adopted for the fixation of fair wages,
the Committee favoured the setting up of Wage Boards.
It recommended that
there should be a State Board for each State, composed of independent members
and representatives of employers and employees in equal numbers.
 In addition to the State Board, there should be a Regional Board for each of the
industry taken up for wage regulation.
Finally, there should be Central Appellate Board to which appeals may be preferred
from the decision of the Wage Boards.
On the recommendations of the Committee on Fair Wages, a bill was introduced in
the Parliament in August 1950, known as Fair Wages Bill.
 It aimed at fixing fair wages for workers employed in first instance, in factories and
mines.
 It contained various other useful provisions also. But the bill now stands lapsed.
1.4.4 The Fair Wage Committee appointed by the
Government of India,
as stated earlier,
drew a distinction between a minimum and
a living wage and
observed that the minimum wage is less than the
living wage.
With regard to the fair wage, the Committee
recommended that
it should be above the minimum wage and below
the living wage.
 1.5 MINIMUM WAGE:
1.5.1 The Committee was of the view that
a minimum wage must provide not merely for the bare
sustenance of life,
but for the preservation of the efficiency of the worker.
For this purpose the minimum wage must also provide for-
some measure of education,
medical requirements and
amenities.
1.5.2 The statutory Minimum Wage is the wage
determined according to the procedure prescribed
by the relevant provisions of the Minimum Wages
Act, 1948.
1.5.3 The question of establishing statutory wage fixing
machinery in India was, therefore, discussed at the third
and fourth meetings of the Standing Labour
Committee held in 1943 and 1944 respectively and at
successive sessions of the Tripartite Labour Conference in
1943, 1944 and 1945.
The last of these approved in principle the enactment of
minimum wages legislation.
On April 11, 1946, a Minimum Wages Bill was introduced
in Parliament but the passage of the Bill was considerably
delayed by the constitutional changes in India.
It was, however, passed into an Act in March 1948.
1.5.4 The Act applies to the employments that are
included in Parts I and II of the Schedule Appended to the
Act.
The authority to include an employment in the schedule and
to take steps for getting the minimum rates of wages fixed
or revised vests with the Government Central or State,
according to the nature of employment.
Once the minimum rates of wages are fixed according to the
procedure prescribed by law, it is the obligation of the
employer to pay the said wages irrespective of the capacity
to pay
Based on the norms suggested by the Working Group and its
acceptance by the Central Advisory Board subsequently in its
meeting held on 19.12.2003, national floor level minimum wage
was revised upward to Rs. 66/- per day with effect from
1.02.2004.
The Central Government has increased the National Floor Level
Minimum Wage from Rs. 66/- to Rs. 80/- per day with effect
from September, 2007.
The National Floor Level Minimum Wage, however, has no
statutory backing.
The State Governments are persuaded to fix minimum wages
such that in none of the scheduled employments, the minimum
wage is less than National Floor Level Minimum Wage.
1.8 CONCEPT OF NATIONAL FLOOR LEVEL MINIMUM WAGE
1.8.1 In order to have a uniform wage structure and to reduce the
disparity in minimum wages across the country, the concept of
National Floor Level Minimum Wage was mooted on the basis of the
recommendations of the National Commission on Rural Labour
(NCRL) in 1991.
Keeping in view the recommendation of NCRL and subsequent rise
in price indices, the National Floor Level Minimum Wage was fixed
at Rs. 35/- per day in 1996.
The Central Government raised the National Floor Level Minimum
Wage to Rs. 40/- per day in 1998 and further to Rs. 45/- with effect
from 01.12.1999, and Rs. 50/- per day with effect from 1.9.2002.
Scheduled Are Category of workers
Employme a Un-Skilled Semi- Skilled/Clerical Highly Skilled Clerical
nt Skilled/Unskill
ed Supervisory

Basi V.D. Tot Basi V.D. Tot Basi V.D. Tot Basi V.D. Tot Basi V.D. Tot
c A. al c A. al c A. al c A. al c A. al
Min Mi Min Mi Min Mi Min Mi Min Mi
Wa n Wa n Wa n Wa n Wa n
ge Wa ge Wa ge Wa ge Wa ge Wa
ge ge ge ge ge

( In Rupees ( In Rupees ( In Rupees ( In Rupees ( In Rupees

Per Day ) Per Day ) Per Day ) Per Day ) Per Day )
Agriculture A 333 38 371 364 43 407 395 46 441 438 50 488 395 23 418

B 303 36 339 335 38 343 364 43 407 407 47 454 364 21 385

C 300 36 336 307 36 343 334 38 372 364 43 407 334 19 353
Industrial A 523 61 584
Worker B 437 50 487 0
(employees C 350 40 390 0
employed in
loading and
unloading in
1)goods
sheda,
parcel
offices of
railways; 2)
other
goodssheds,
godowns,
warehouses;
3) docks and
ports
Industrial For 350 40 359 437 50 487 523 61 584 610 71 681
Workers work
employed in above
Gypsum groun
Mines, d
Barytes For 437 50 487 523 61 584 610 71 681 683 78 761
Mines, work
Mauxite below
Mines, groun
Manganese d
Mines, China
Clay Mines,
Kyanite
Mines,
Copper
Mines, Clay
Mines,
Magnesite
Mines,
White Clay
Category Daily Daily VDA Total Daily Minimum Wages
Basic
1. Excavation & removal of over burden with Wage
50 m lead/1.5 meters lift

(a) Soft Soil 351 42 393

Schedule Area Category of workers
d
Employm Un-Skilled Semi- Skilled/Clerical Highly Skilled Clerical
ent Skilled/Unskilled
Supervisory

(b) Soft Soil with Rock 531 61 592

Basic V.D. Tota Basic V.D. Tota Basic V.D. Tota Basic V.D. Tota Basic V.D. Tota
Min A. l Min A. l Min A. l Min A. l Min A. l
Wag Min Wag Min Wag Min Wag Min Wag Min
e Wag e Wag e Wag e Wag e Wag
e e e e e

( In Rupees Per ( In Rupees Per ( In Rupees Per ( In Rupees Per ( In Rupees Per
Day ) Day ) Day ) Day ) Day )

Agricultu A 333 38 371 364 43 407 395 46 441 438 50 488 395 23 418
re

B 303 36 339 335 38 343 364 43 407 407 47 454 364 21 385

(c ) Rock 703 81 784

C 300 36 336 307 36 343 334 38 372 364 43 407 334 19 353

Industrial A 523 61 584

Worker
(employe
es
employed B 437 50 487 0
in loading
and
unloading
in C 350 40 390 0
1)goods
sheda,
parcel
offices of
railways;
2) other
goodsshe

2. Removal and Staking of rejected stones with 283 33 316

ds,
godowns,
warehous
es; 3)
docks and
ports

50 meters lead 1.5 meters lift Industrial

Workers
employed
in
Gypsum
Mines,
Barytes
For
wor
k
abov
e
grou
nd
350 40 359 437 50 487 523 61 584 610 71 681

Mines,
Mauxite
Mines,
Mangane
se Mines,
China
Clay
Mines,
Kyanite For 437 50 487 523 61 584 610 71 681 683 78 761
Mines, wor
Copper k
Mines, belo
Clay w
Mines, grou
Magnesit nd
e Mines,
White
Clay
Mines,
Stone
Mines,
Steatite
Mines,
Ochre
Mines,
Asbestos
Mines,
Fire Clay
Mines,

Stone Breaking or Stone Crushing for the stone Daily Basic Daily VDA Total Daily Minimum Wages
Chromite
Mines,
Quartzite
Mines,
Quartz
Mines,
Silica
Mines,
Graphite
Mines,
Felspar
Mines,

size Wage
Laterite
Mines,
Dolomite
Mines,
Red Oxide
Mines,
Wolfram
Mines,
Iron Ore
Mines,
Granite
Mines,
Rock
Phosphat
e Mines,
Hematite
Mines,
Marble
and
Calcite
Mines,
Uranium
Mines,
Mica
Mines,
Lignite
Mines,
Gravel
Mines,
Slate
Mines,
Magnetit
e Mine

(a) 1.0 inch to 1.5 inches 2171 246 2417

Sweeping A 523 61 584

(b) Above 1.5 inches to 3.0 inches 1857 210 2067

and
Cleaning

B 437 50 487

C 350 40 390

Watch A 637 73 710

and Ward
(without
arms)
B 579 66 645

C 494 57 551

Watch A 693 79 772

and Ward
(with
arms)
B 637 73 710

C 579 66 645

Construct A 523 61 584 579 66 645 637 73 710 639 79 718 637 36 673
ion or

(c ) Above 3.0 inches to 5.0 inches 1088 125 1213

maintena
nce of
roads or
runways
B 437 50 487 494 57 551 579 66 645 637 73 710 579 33 612
in
buliding
operation
s
including
laying C 350 40 390 410 47 457 494 57 551 579 66 645 494 28 522
down
undergro
und
electric,w
ireless,
radio,
television
,
telephon
e,
telegraph
and
overseas
communic
ation
cables
and
similar
other
undergro
und
cabling
work,
electric
lines,
water
supply

(d) Above 5.0 inches 893 102 995

lines and
sewerage
pipe lines
Norms for fixation / revision of minimum wages.
The norms include those which were recommended by the Indian Labour
Conference in its session held in 1957‘
(a) 3 consumption units for one earner.
(b)Minimum food requirements of 2700 calories per average Indian adult.
(c)Clothing requirements of 72 yards per annum per family'
(d)Rent corresponding to Government's Industrial the minimum area provided for
under Housing Scheme.
(e)Fuel, lighting and other miscellaneous items of expenditure to constitute, 20%
of the total Minimum Wages'