Understanding wages

Presented by Isha Gosain Debashis Mukherjee Richa Chandwani

Meaning of wages
The term wages referred to the remuneration paid

to the workers for his services to the organization. Normally the wage period is shorter than salary period .

NEED OF WAGES
Better food, Better clothes Better housing Better schooling

These are the needs that constantly worry a person. What fields and crops are to the farmer, ones job and wages are to the industrial worker.

HISTORY OF LABOUR WAGES

In 1860,Government of India passed the Employers and Workmens

(Disputes) Act.
In the year 1929, the Royal Commission on Labor found that the Act

had ceased to be used. The Government therefore, repealed the Act in 1932.
The Indian Trade Disputes Act 1929 provided for setting up Courts of

Inquiry and Boards of Conciliation for the settlement of industrial disputes.

Rule 81A of the Defense of India Rules issued in January 1942 gave

Government wide powers to make rules or issue special orders to restrain strikes and lockouts and to refer any dispute including wage disputes to conciliation or adjudication.

 The Industrial Policy Resolution announced on 6th April 1948

emphasized
fixation of statutory minimum wages in sweated industries promotion of fair wage agreements in the more organized

industries.
The Central Advisory Council in its first session (November

1948) appointed a Tripartite Committee on Fair Wages consisting of representatives of employers, employees and Government to enquire into and report on the subject of fair wages to labor.
In 1978, Government of India appointed a Committee on

Consumer Price Index Numbers under the chairmanship of Dr. N. Rath.

In 1991, the National Commission on Rural Labor constituted

under the chairmanship of Dr. C. H. Hanumanth Rao made a strong recommendation for a national minimum wage for rural labour.

TYPES OF WAGES
Broadly wages can be divided as:
WAGES

Subsistence wages

Minimum wages

Fair wages

Living wages

These wages are like a ladder, going from the lowest subsistence wage to the top living wage
Maintains workers health, comfort and also some insurance against the more important misfortunes of life. Fair wages are adjustable. It moves up according to capacity of the industry to pay & the prevailing rates of wages in the area or industry. Provides not only for bare physical needs of worker, but also looks after the measures for health, education & other needs. Meets only bare physical needs of worker without any reference to the other members of the family or to any degree of comfort, health or security

Living wages Fair wages Minimum wages

Subsistence wages

There can be another classification of wages also i.e.

Nominal / money wages: This refer to the actual

amount of money a worker receives as payment for work, for example: Rs.1800
Real wages: This refers to the goods and

services which money wages can buy. The amount of goods and services which can be bought from Rs.1800 will differ from time to time due to rise or fall in the cost of living.

LEGAL FRAMEWORK
THE PAYMENT OF WAGES ACT,1936 THE MINIMUM WAGES ACT, 1948 THE PAYMENT OF BONUS ACT, 1965 THE EQUAL REMUNERATION ACT,1976

THE PAYMENT OF WAGES ACT

PART I Deals with the regulation and payment

of wages by the employer PART II Specifies the heads under which deductions can be made from wages PART III Provides machinery for enforcing specific claims arising out of delayed payments , deduction from wages etc.

THE PAYMENT OF BONUS ACT

The government of India constituted the Bonus

commission on dec,1961and it came into force from oct,1965. The objective is to maintain peace and harmony between labor and capital by allowing the employees to share in the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labor.

THE EQUAL REMUNARATION ACT

It came into force from 1976.

The objective is to provide for the payment of

equal remuneration to men and women and for the prevention of discrimination, on ground of sex , against women in the matter of employment. It also seeks to provide for increasing opportunities for women in the specified employments.

MINIMUM WAGES ACT, 1948

A Minimum Wages Bill was introduced in the Central Legislative Assembly on 11.4.46 to provide for fixation of minimum wages in certain employments. It was passed in 1946 and came into force with effect from 15.3.48. Under the Act, Central and State Governments are appropriate Governments to (a) notify scheduled employment (b) fix/revise minimum wages The Act contains list of all these employments for which minimum wages are to be fixed by the appropriate Governments.

There are two parts of the Schedule. Part I has non-agricultural employments whereas Part-II has employment in agriculture

The norms include those which were recommended by the Indian Labor Conference in its session held in 1957 at Nainital. (i) 3 consumption units for one earner. worker = 1.0 units wife = 0.8 units 2 children @ 0.6 each =1.2 units Total : 4 persons = 3.0 consumption units (ii) Minimum food requirements of 2700 calories per average Indian adult. (iii) Clothing requirements of 72 yards per annum per family. (iv) Rent corresponding to the minimum area provided for under Government's Industrial Housing Scheme. (v )Fuel, lighting and other Miscellaneous items of expenditure to constitute 20% of the total Minimum Wages.

Norms

Enforcement Machinery
The enforcement of the

provisions of the Minimum Wages Act in the Central Sphere , is secured through the officers of Central Industrial Relations Machinery. In State Sphere the enforcement is the responsibility of the respective State Government/Union Territory.

DAILY MINIMUM WAGES IN DELHI (In Rs.) w.e.f. 1 Aug08

worker cat

Skilled

Semiskilled 148.04

Un-skilled

Industry
Automobile

157.96

141.62

Tanneries & leather Manufacturing

Textile

157.96
157.96

148.04
148.04

141.62
141.62

DAILY MINIMUM WAGES IN HARYANA (In Rs.) w.e.f. 1 Aug 08

worker cat

Skilled

Semiskilled 148 148 148

Un-skilled

Industry
Automobile

163 163 163

138 138 138

Tanneries & leather Manufacturing Textile

DAILY MINIMUM WAGES IN MAHARASTRA(zone 1) (In Rs.) w.e.f. 1 Aug 08

worker cat

Skilled

Semiskilled 105.73 151.84 149.15

Un-skilled

Industry
Automobile

109.58 155.69 153

101.89 148 145.30

Tanneries & leather Manufacturing Shops

TAMILNADU (In Rs.) w.e.f. 1 Aug 08

worker cat

Skilled

Semiskilled 112.75

Un-skilled

Industry
Automobile

112.75

112.75

Tailoring Industry Shops

83.35
93.77

83.35
93.77

83.35
93.77

Wage,incentives and plans

Wage system Time wage system
Piece wage system

Wages incentive plans

Individual Incentives Based on time Halsey Plan Rowan Plan Emerson Plan Bedeaux Plan
Based on Productivity Taylor Plan Merrick Plan Gantt Plan Group Plan Priestmans plan Profit Sharing

Extra wages for overtime

When a worker works in an employment for more than nine hours on any day or for more than fortyeight hours in any week, he shall in respect of overtime work, be entitled to wages (a) In the case of employment in agriculture, at one and a half times the ordinary rate of wages (b) In the case of any other scheduled employment, at double the ordinary rate of wages