Wage fixation
WAGE FIXATION
Introduction
·
Wage Fixation is a process
of fixing minimum wages of a worker under section 3 of the minimum wages act 1948
for
o
Different classes of work
o
Different schedule employment
o
Different localities
o
Different age groups
·
The process of wage fixation is done on the
basis of
o
Working hours
o
Working days
o
Working weeks
Introduction
to the important sections of Minimum Wages Act 1948
·
Section 1 (Short
title and extent)
o
The title of this act is Minimum Wages Act
1948
o
It is extended to the whole India
·
Section 2 (Interpretation/Definition)
o
Adult (completed his 18 years of age)
o
Adolescent (completed his 15 years of age but
not 18years)
o
Child (nor completed his 15years of age)
o
Appropriate governments (Central & States
government across India)
o
Employer (who employs one or more employees
in employment)
o
Wages (remuneration expressed in terms of
money)
o
Employee (Employed for hire or reward)
·
Section 3 (Fixing
of minimum rate of wages)
o
Minimum rate of wages will be reviewed after
every 5 years
o
Government can add any employment, wherein
1000 or more employees are working
o
Different minimum rates of wages can be fixed
for different categories of work
·
Section 4 (Minimum
rate of wages)
o
Basic + Special Allowance
o
Basic + Cash Value
o
Basic + Cost of living allowances + Cash
Value
·
Section 5 (Procedure
for the fixation & revision of minimum wages)
o
Recommendation of Advisory Board for
different classes like
§ Unskilled
§ Skilled
§ Clerk
§ Supervisor
o
Publish recommendations in the National
Publication
o
Hearing of the representatives
o
Notification of minimum wages
·
Section 12 (Payment
of minimum rate of wages)
o
Shall be paid in cash
o
Either wholly or partly in kind
o
Paid without any deductions other than
statutory
o
Payment of wages less than the minimum wages
would be considered as illegal
Methods
of Wage Fixation
·
Time Rate System
o
Wages = (Number of working days) * (Rate per
day)
o
Wages = (Number of working hours) * (Rate per
hour)
·
Piece Rate System
o
Wages = (Number of unit produced) * (Rate per
unit)
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