WAGES & WAGE

DIFFERENTIALS
WAGES
Economic compensation paid by the
employer for the services rendered by
them
TYPES
1.Time Rate
2. Piece Rate
3. Balance or Debt Rate
WAGE DIFFERENTIALS
Wages differ in different employments or
occupations, industries & localities and also
between persons in the same employment
TYPES
1. Occupational Differentials
2. Inter- firm Differentials
3.Inter area or Regional Differentials
4. Inter- industry Differentials
5. Personal Wage Differentials
IMPORTANCE

• Economic & social importance

• Allocation of economic resources & man
power
• Growth of national income
• Pace of economic development
• Social welfare activity
• Labour allocation
• Enable full employment
• Economic progress
WAGE DIFFERENTIALS IN INDIA
• Unorganized labour market
• Personal differentials

ELIMINATION THROUGH
* Government interference
* Appointment of Wage boards
* Pressure from trade unions