wages system
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Slide 1SUBMITED TO:-
Fair wage
Living wage
Minimum wages
Minimum wage providing for sustenance of life plus for preservation of the efficiency of worker.
Two types of M.W.
1- Informal minimum wages
2- Setting minimum wage
Informal minimum wages
Customs and extra-legal pressures from governments or labor unions can produce a de facto minimum wage. So can international public opinion, by pressuring multinational companies to pay Third World workers wages usually found in more industrialized countries
4/1/2015 10:42:50 AM
Setting minimum wage
Among the indicators that might be used to establish an initial minimum wage rate are ones that minimize the loss of jobs while preserving international competitiveness
4/1/2015 10:42:50 AM
Fair wage
Equal to the rate prevailing in the same trade and in the neighborhood , or equal to the Predominant rate for similar work throughout the country.
4/1/2015 10:42:50 AM
Living wage
Higher than fair wage. Provides for base essential plus frugal comforts.
4/1/2015 10:42:50 AM
Wage policy in india
Wages policy refers to all systematic efforts of the government in relation to national wage and salary system.
4/1/2015 10:42:53 AM
To obtain for the worker a just share of the
fruits of economic development.
whose bargaining position is weak
To abolish malpractices and abuses in
wages and salary payments.
OR
4/1/2015 10:42:53 AM
R Rate per unit
13
For example- If a worker produces 20 units per day when the piece rate is Rs 30 Per unit, the total wages per day will be 20*30 = Rs 600
4/1/2015 10:42:53 AM
14
salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis
4/1/2015 10:42:53 AM
First paid salary
While there is no first pay stub for the first work-for-pay exchange, the first salaried work would have required a society advanced enough to have a barter system which allowed for the even exchange of goods or services between tradesmen
4/1/2015 10:42:53 AM
16
Salarium
Similarly, the Latin word salarium linked employment, salt, and soldiers, but the exact link is not very clear.
4/1/2015 10:42:53 AM
17
allowances
An allowance is an amount of money given or allotted usually at regular intervals for a specific purpose. In the context of children, parents may provide an allowance: pocket money to their child for their miscellaneous personal spending. In the construction industry it may be an amount allocated to a specific item of work as part of an overall contract.
4/1/2015 10:42:53 AM
Construction contracting
In construction, an allowance is an amount specified and included in the construction contract (or specifications) for a certain item of work (e.g., appliances, lighting, etc.) whose details are not yet determined at the time of contracting.
4/1/2015 10:42:53 AM
Allowances for children
Parents often give their children an allowance (British English: pocket money) for their miscellaneous personal spending, and also to teach them money management at an early age.
4/1/2015 10:42:53 AM
Allowances for adults
In Japan three quarters of men get a monthly allowance from their wives. Since 1979 Shinsei Bank has been researching the amount of spending money given to husbands by their wives. In 2011 it is 39,600 Yen or about $US 500
4/1/2015 10:42:53 AM
22
incentives
An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities
There are (1) Individual incentive schemes.
(2)Group incentives programe.
4/1/2015 10:42:53 AM
Remunerative incentives
Are said to exist where an agent can expect some form of material reward – especially money – in exchange for acting in a particular way.
Financial incentives
moral incentives
Are said to exist where a particular choice is widely regarded as the right thing to do, or as particularly admirable, or where the failure to act in a certain way is condemned as indecent. A person acting on a moral incentive can expect a sense of self-esteem, and approval or even admiration from his community; a person acting against a moral incentive can expect a sense of guilt, and condemnation or even ostracism from the community.
4/1/2015 10:42:53 AM
Coercive incentives
Are said to exist where a person can expect that the failure to act in a particular way will result in physical force being used against them (or their loved ones) by others in the community – for example, by inflicting pain in punishment, or by imprisonment, or by confiscating or destroying their possessions.
Natural Incentives
such as curiosity, mental or physical exercise, admiration, fear, anger, pain, joy, or the pursuit of truth, or the control over things in the world or people or oneself.
4/1/2015 10:42:53 AM
Other forms
These categories do not, by any means, exhaust every possible form of incentive that an individual person may have. In particular, they do not encompass the many other forms of incentive – which may be roughly grouped together under the heading of personal incentives – which motivate an individual person through their tastes, desires, sense of duty, pride, personal drives to artistic creation or to achieve remarkable feats, and so on.
4/1/2015 10:42:53 AM
Standard time = 10 hrs
Case (i)
Case (ii)
= 10*1 = 10 Ru
12*1 = 12 Ru
Halsey plan
A wage incentive program established as the first in the US industry. The incentive program was created by Frederick A. Halsey as a method for improving the straight piece-rate system in an effort to reduce wage rate cutting by management.
4/1/2015 10:42:53 AM
Standard time = 10 hrs
Case (i)
Case (ii)
Case (iii)
= 9.00 Ru
Rowan plan
It is widely used in England. It was introduced by James Rowan of David Rowan & Sons, Glass go in 1901. It is modification in the Halsey's Plan. The premium is calculated on a percentage of wages for the time worked and not for the time saved. This gives more bonus to the workers.
4/1/2015 10:42:54 AM
Standard time = 10 hrs
Case (i)
Case (ii)
Case (iii)
(iii) Sharing of profit for over-achievement may not be liked by workers.
4/1/2015 10:43:01 AM
The piece-rate with minimum guaranteed wage, Rowan plan and Halsey plan are compared below. All plans guarantee an assured minimum wage. For over-achievers, i.e., those, who perform more than standard output, will get different wages in these plans.
4/1/2015 10:43:01 AM
Taylor differential piece rate system
This system was devised by F.W. Taylor, the father of scientific management and was the first systematic attempt in rationalizing incentive.
It is based on the assumption that the degree of efficiency varies from worker to worker and hence the workers must be paid according to their degree of efficiency.
4/1/2015 10:43:02 AM
36
To illustrate the taylor’s piece rate system, we take the following:
Standard output = 100 units
Differentials to be applied:
120 per cent of piece-rate at or above the standard
80 per cent of piece-rate when below the standard
Case (1)
37
Disadvantages
(i) It does not guarantee a minimum wage for the workers.
ii) The system is very harsh to the inefficient workers because they gentle wages due to lower rate and lower output.
iii) It penalises a worker who just fails to attain the standard by a narrow margin
It is clear from the above illustration that the workers with lower efficiency less wages and workers with higher efficiency get more wages under Taylor differential piece rate system as compared to ordinary piece rate system.
4/1/2015 10:43:02 AM
Merrick Differential piece rate system
This system made by Mr. Merrick, is a modification of Taylor’s differential piece rate system. Under Taylor’s differential piece rate system, workers by whom 100% efficiency cannot be attained or penalized, where as under Merrick system, there is no imposition of such punitive lower rate upon them
4/1/2015 10:43:02 AM
Standard output = 100 units
Piece rate = 10 paise
Earnings-
As the efficiency is less than 83 per cent, only the base piece rate applies
80*0.10= 8.00 rupees
In this, a minimum time wage is guaranteed. Working condition and standard output are fixed on the basis of time-study.
4/1/2015 10:43:02 AM
Standard output in 10 hrs = 100 units
Rate per hour = 1 rupees
Case (1)
Earnings:
Efficiency = 50 per cent
As the efficiency is below 67 per cent the worker is entitled to time wages only.
10*1 = 10.00
Efficiency = 100 per cent
42
The worker is entitled to time wages plus 20 per cent of time wages as bonus.
Time = 10*1 = 10.00
Bonus = 20/100*10 = 2.00
Efficiency = 130 per cent
At the rate of 20 per cent at 100 per cent efficiency and one per cent increase for every one per cent increase in efficiency, the worker is eligible for 50 per cent of the time wage as bonus.
Time wages = 10*1 = 10.00
Bonus = 50/100*10 = 5.00
4/1/2015 10:43:02 AM
Social pressure
It's also worth noting that these categories are not necessarily exclusive; one and the same situation may, in its different aspects, carry incentives that come under any or all of these categories. In modern American society
4/1/2015 10:43:02 AM
45
economics
The study of economics in modern societies is mostly concerned with remunerative incentives rather than moral or coercive incentives – not because the latter two are unimportant, but rather because remunerative incentives are the main form of incentives employed in the world of business, whereas moral and coercive incentives are more characteristic of the sorts of decisions studied by political science and sociology.
4/1/2015 10:43:02 AM
46
recessions
Though bonuses make an integral component of free market practices on human beings, continuing to pay them to executives by companies benefiting from US Government financial help as planned and as contracted is facing great criticism and opposition from politicians and media.
4/1/2015 10:43:02 AM
Non-monetary benefits
Compensation given in a transaction which does not involve cash. A non-monetary reward can consist of almost any material object such as jewelry, precious metals or an automobile for example. In business, a non-monetary reward can also be a service such as improvement made on a property or repairs done on a car.
4/1/2015 10:43:02 AM
1936
With the growth of industries in India, problems relating to payment of wages to persons employed in industry took an ugly turn. The industrial units were riot making payment of wages to their workers at regular intervals and wages were not uniform. The industrial workers were forced to raise their heads against their exploitation. In 1926, Government of India wrote to local governments to ascertain the position with regard to the delays which occurred in the payment of wages to the persons employed in Industry. Material so collected was placed before the Royal Commission on Labour which was appointed in 1929.
4/1/2015 10:43:02 AM
STATEMENT OF OBJECTS AND REASONS
In 1926 the Government of India addressed local governments with a view to ascertain the position with regard to the delays which occurred in the payment of wages to persons employed in industry, and the practice of imposing fines on them. The investigations revealed the existence of abuses in both directions and the material collected was placed before the Royal Commission on Labour which was appointed in 1929.
4/1/2015 10:43:02 AM
LIST OF AMENDING ACTS, ORDINANCE AND ADAPTATION ORDERS
1. The Government of India (Adaptation of Indian Laws) Order, 1937.
2. The Repealing and Amending Act, 1937 (20 of 1937).
3. The Payment of Wages (Amendment) Act, 1937 (22 of 1937).
4. The Payment of Wages (Amendment) Ordinance, 1940 (3 of 1940).
5. The Indian Independence (Adaptation of Central Acts and Ordinances) Order,1948.
6. The Adaptation of Laws Order, 1950.
7. The Part B States (Laws) Act, 1951 (3 of 1951).
8. The Payment of Wages (Amendment) Act, 1957 (68 of 1957).
9. The Payment of Wages (Amendment) Act, 1964 (53 of 1964).
10. The Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970 (51of 1970).
11. The Repealing and Amending Act, 1974 (56 of 1974).
12. The Payment of Wages (Amendment) Act, 1976 (29 of 1976).
13. The Payment of Wages (Amendment) Act, 1977 (19 of 1977).
14. The Payment of Wages (Amendment) Act, 1982 (38 of 1982).
15. The Payment of Wages (Amendment) Act, 2005 (41 of 2005).
4/1/2015 10:43:02 AM
Minimum Wages Act 1948
The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labours. The Indian Constitution has defined a 'living wage' that is the level of income for a worker which will ensure a basic standard of living including good health, dignity, comfort, education and provide for any contingency. However, to keep in mind an industry's capacity to pay the constitution has defined a 'fair wage'. Fair wage is that level of wage that not just maintains a level of employment, but seeks to increase it keeping in perspective the industry’s capacity to pay. To achieve this in its first session during November 1948, the Central Advisory Council appointed a Tripartite Committee of Fair Wage. This committee came up with the concept of Minimum Wages
4/1/2015 10:43:02 AM
52
1920: Mr. K.G.R. Choudhary recommended setting up boards for determining minimum wages for each industry.
1928: International Labour Conference implemented system to fix wages for different trades. However, the practice was not put into legislation in India.
1943: Standing Labour Committee, a Labour Investigation Committee was appointed on the recommendation of Indian Labour Conference (ILC), 1943 to look into conditions of labour in terms of their wages, housing, social conditions, and employment.
1945: The first bill on minimum wages was drafted in ILC.
4/1/2015 10:43:02 AM
Straight piece work
Straight Piecework Plan-Incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces. Differential Piece Rates-Incentive pay in which the piece rate is higher when a greater amount is produced.
4/1/2015 10:43:02 AM
standard hour plan
A standard hour plan is an incentive pay plan which establishes a fixed unit of time for completion of a task or job. An employee receives the wage for the standard unit of time for completion of the task without regard to the actual time needed…………….
4/1/2015 10:43:02 AM
55
For example, assume that in an automobile repair shop the standard time for replacing a muffler is one hour. Under a standard hour plan an employee would receive one hour's wage for replacing a muffler, regardless of the actual time required. Such a plan requires accurate measurement of time necessary for each job or task
4/1/2015 10:43:02 AM
Compensation of employees
Compensation of employees (CE) is a statistical term used in national accounts, balance of payments statistics and sometimes in corporate accounts as well. It refers basically to the total gross (pre-tax) wages paid by employers to employees for work done in an accounting period, such as a quarter or a year
4/1/2015 10:43:02 AM
Objectives of compensation
To be precise, Compensation is what an employee gets in return to his contribution to the organization. The term compensation includes pay, incentives, and benefits offered by the employers for hiring the services of employees. Compensation planning plays an important role in any HR department’s efforts to obtain, maintain and retain an effective workforce. Compensation planning follows a set of objectives.
4/1/2015 10:43:03 AM
Wage vs. Salary
The difference between wage and salary defines more than how much you end up making per year. We use the terms to often describe differences in types of work, as well as what is actually counted in the final total.
Wages are generally paid per hour. This means that you have to be present and working in order to get paid. Most of the time, wage jobs are not as inclusive when it comes to things like paid vacations, or paid sick days. Wage earners often have to give up pay for leaving early, coming in late, missing a day, or taking a vacation.
4/1/2015 10:43:03 AM
Fair wage
Living wage
Minimum wages
Minimum wage providing for sustenance of life plus for preservation of the efficiency of worker.
Two types of M.W.
1- Informal minimum wages
2- Setting minimum wage
Informal minimum wages
Customs and extra-legal pressures from governments or labor unions can produce a de facto minimum wage. So can international public opinion, by pressuring multinational companies to pay Third World workers wages usually found in more industrialized countries
4/1/2015 10:42:50 AM
Setting minimum wage
Among the indicators that might be used to establish an initial minimum wage rate are ones that minimize the loss of jobs while preserving international competitiveness
4/1/2015 10:42:50 AM
Fair wage
Equal to the rate prevailing in the same trade and in the neighborhood , or equal to the Predominant rate for similar work throughout the country.
4/1/2015 10:42:50 AM
Living wage
Higher than fair wage. Provides for base essential plus frugal comforts.
4/1/2015 10:42:50 AM
Wage policy in india
Wages policy refers to all systematic efforts of the government in relation to national wage and salary system.
4/1/2015 10:42:53 AM
To obtain for the worker a just share of the
fruits of economic development.
whose bargaining position is weak
To abolish malpractices and abuses in
wages and salary payments.
OR
4/1/2015 10:42:53 AM
R Rate per unit
13
For example- If a worker produces 20 units per day when the piece rate is Rs 30 Per unit, the total wages per day will be 20*30 = Rs 600
4/1/2015 10:42:53 AM
14
salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis
4/1/2015 10:42:53 AM
First paid salary
While there is no first pay stub for the first work-for-pay exchange, the first salaried work would have required a society advanced enough to have a barter system which allowed for the even exchange of goods or services between tradesmen
4/1/2015 10:42:53 AM
16
Salarium
Similarly, the Latin word salarium linked employment, salt, and soldiers, but the exact link is not very clear.
4/1/2015 10:42:53 AM
17
allowances
An allowance is an amount of money given or allotted usually at regular intervals for a specific purpose. In the context of children, parents may provide an allowance: pocket money to their child for their miscellaneous personal spending. In the construction industry it may be an amount allocated to a specific item of work as part of an overall contract.
4/1/2015 10:42:53 AM
Construction contracting
In construction, an allowance is an amount specified and included in the construction contract (or specifications) for a certain item of work (e.g., appliances, lighting, etc.) whose details are not yet determined at the time of contracting.
4/1/2015 10:42:53 AM
Allowances for children
Parents often give their children an allowance (British English: pocket money) for their miscellaneous personal spending, and also to teach them money management at an early age.
4/1/2015 10:42:53 AM
Allowances for adults
In Japan three quarters of men get a monthly allowance from their wives. Since 1979 Shinsei Bank has been researching the amount of spending money given to husbands by their wives. In 2011 it is 39,600 Yen or about $US 500
4/1/2015 10:42:53 AM
22
incentives
An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities
There are (1) Individual incentive schemes.
(2)Group incentives programe.
4/1/2015 10:42:53 AM
Remunerative incentives
Are said to exist where an agent can expect some form of material reward – especially money – in exchange for acting in a particular way.
Financial incentives
moral incentives
Are said to exist where a particular choice is widely regarded as the right thing to do, or as particularly admirable, or where the failure to act in a certain way is condemned as indecent. A person acting on a moral incentive can expect a sense of self-esteem, and approval or even admiration from his community; a person acting against a moral incentive can expect a sense of guilt, and condemnation or even ostracism from the community.
4/1/2015 10:42:53 AM
Coercive incentives
Are said to exist where a person can expect that the failure to act in a particular way will result in physical force being used against them (or their loved ones) by others in the community – for example, by inflicting pain in punishment, or by imprisonment, or by confiscating or destroying their possessions.
Natural Incentives
such as curiosity, mental or physical exercise, admiration, fear, anger, pain, joy, or the pursuit of truth, or the control over things in the world or people or oneself.
4/1/2015 10:42:53 AM
Other forms
These categories do not, by any means, exhaust every possible form of incentive that an individual person may have. In particular, they do not encompass the many other forms of incentive – which may be roughly grouped together under the heading of personal incentives – which motivate an individual person through their tastes, desires, sense of duty, pride, personal drives to artistic creation or to achieve remarkable feats, and so on.
4/1/2015 10:42:53 AM
Standard time = 10 hrs
Case (i)
Case (ii)
= 10*1 = 10 Ru
12*1 = 12 Ru
Halsey plan
A wage incentive program established as the first in the US industry. The incentive program was created by Frederick A. Halsey as a method for improving the straight piece-rate system in an effort to reduce wage rate cutting by management.
4/1/2015 10:42:53 AM
Standard time = 10 hrs
Case (i)
Case (ii)
Case (iii)
= 9.00 Ru
Rowan plan
It is widely used in England. It was introduced by James Rowan of David Rowan & Sons, Glass go in 1901. It is modification in the Halsey's Plan. The premium is calculated on a percentage of wages for the time worked and not for the time saved. This gives more bonus to the workers.
4/1/2015 10:42:54 AM
Standard time = 10 hrs
Case (i)
Case (ii)
Case (iii)
(iii) Sharing of profit for over-achievement may not be liked by workers.
4/1/2015 10:43:01 AM
The piece-rate with minimum guaranteed wage, Rowan plan and Halsey plan are compared below. All plans guarantee an assured minimum wage. For over-achievers, i.e., those, who perform more than standard output, will get different wages in these plans.
4/1/2015 10:43:01 AM
Taylor differential piece rate system
This system was devised by F.W. Taylor, the father of scientific management and was the first systematic attempt in rationalizing incentive.
It is based on the assumption that the degree of efficiency varies from worker to worker and hence the workers must be paid according to their degree of efficiency.
4/1/2015 10:43:02 AM
36
To illustrate the taylor’s piece rate system, we take the following:
Standard output = 100 units
Differentials to be applied:
120 per cent of piece-rate at or above the standard
80 per cent of piece-rate when below the standard
Case (1)
37
Disadvantages
(i) It does not guarantee a minimum wage for the workers.
ii) The system is very harsh to the inefficient workers because they gentle wages due to lower rate and lower output.
iii) It penalises a worker who just fails to attain the standard by a narrow margin
It is clear from the above illustration that the workers with lower efficiency less wages and workers with higher efficiency get more wages under Taylor differential piece rate system as compared to ordinary piece rate system.
4/1/2015 10:43:02 AM
Merrick Differential piece rate system
This system made by Mr. Merrick, is a modification of Taylor’s differential piece rate system. Under Taylor’s differential piece rate system, workers by whom 100% efficiency cannot be attained or penalized, where as under Merrick system, there is no imposition of such punitive lower rate upon them
4/1/2015 10:43:02 AM
Standard output = 100 units
Piece rate = 10 paise
Earnings-
As the efficiency is less than 83 per cent, only the base piece rate applies
80*0.10= 8.00 rupees
In this, a minimum time wage is guaranteed. Working condition and standard output are fixed on the basis of time-study.
4/1/2015 10:43:02 AM
Standard output in 10 hrs = 100 units
Rate per hour = 1 rupees
Case (1)
Earnings:
Efficiency = 50 per cent
As the efficiency is below 67 per cent the worker is entitled to time wages only.
10*1 = 10.00
Efficiency = 100 per cent
42
The worker is entitled to time wages plus 20 per cent of time wages as bonus.
Time = 10*1 = 10.00
Bonus = 20/100*10 = 2.00
Efficiency = 130 per cent
At the rate of 20 per cent at 100 per cent efficiency and one per cent increase for every one per cent increase in efficiency, the worker is eligible for 50 per cent of the time wage as bonus.
Time wages = 10*1 = 10.00
Bonus = 50/100*10 = 5.00
4/1/2015 10:43:02 AM
Social pressure
It's also worth noting that these categories are not necessarily exclusive; one and the same situation may, in its different aspects, carry incentives that come under any or all of these categories. In modern American society
4/1/2015 10:43:02 AM
45
economics
The study of economics in modern societies is mostly concerned with remunerative incentives rather than moral or coercive incentives – not because the latter two are unimportant, but rather because remunerative incentives are the main form of incentives employed in the world of business, whereas moral and coercive incentives are more characteristic of the sorts of decisions studied by political science and sociology.
4/1/2015 10:43:02 AM
46
recessions
Though bonuses make an integral component of free market practices on human beings, continuing to pay them to executives by companies benefiting from US Government financial help as planned and as contracted is facing great criticism and opposition from politicians and media.
4/1/2015 10:43:02 AM
Non-monetary benefits
Compensation given in a transaction which does not involve cash. A non-monetary reward can consist of almost any material object such as jewelry, precious metals or an automobile for example. In business, a non-monetary reward can also be a service such as improvement made on a property or repairs done on a car.
4/1/2015 10:43:02 AM
1936
With the growth of industries in India, problems relating to payment of wages to persons employed in industry took an ugly turn. The industrial units were riot making payment of wages to their workers at regular intervals and wages were not uniform. The industrial workers were forced to raise their heads against their exploitation. In 1926, Government of India wrote to local governments to ascertain the position with regard to the delays which occurred in the payment of wages to the persons employed in Industry. Material so collected was placed before the Royal Commission on Labour which was appointed in 1929.
4/1/2015 10:43:02 AM
STATEMENT OF OBJECTS AND REASONS
In 1926 the Government of India addressed local governments with a view to ascertain the position with regard to the delays which occurred in the payment of wages to persons employed in industry, and the practice of imposing fines on them. The investigations revealed the existence of abuses in both directions and the material collected was placed before the Royal Commission on Labour which was appointed in 1929.
4/1/2015 10:43:02 AM
LIST OF AMENDING ACTS, ORDINANCE AND ADAPTATION ORDERS
1. The Government of India (Adaptation of Indian Laws) Order, 1937.
2. The Repealing and Amending Act, 1937 (20 of 1937).
3. The Payment of Wages (Amendment) Act, 1937 (22 of 1937).
4. The Payment of Wages (Amendment) Ordinance, 1940 (3 of 1940).
5. The Indian Independence (Adaptation of Central Acts and Ordinances) Order,1948.
6. The Adaptation of Laws Order, 1950.
7. The Part B States (Laws) Act, 1951 (3 of 1951).
8. The Payment of Wages (Amendment) Act, 1957 (68 of 1957).
9. The Payment of Wages (Amendment) Act, 1964 (53 of 1964).
10. The Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970 (51of 1970).
11. The Repealing and Amending Act, 1974 (56 of 1974).
12. The Payment of Wages (Amendment) Act, 1976 (29 of 1976).
13. The Payment of Wages (Amendment) Act, 1977 (19 of 1977).
14. The Payment of Wages (Amendment) Act, 1982 (38 of 1982).
15. The Payment of Wages (Amendment) Act, 2005 (41 of 2005).
4/1/2015 10:43:02 AM
Minimum Wages Act 1948
The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labours. The Indian Constitution has defined a 'living wage' that is the level of income for a worker which will ensure a basic standard of living including good health, dignity, comfort, education and provide for any contingency. However, to keep in mind an industry's capacity to pay the constitution has defined a 'fair wage'. Fair wage is that level of wage that not just maintains a level of employment, but seeks to increase it keeping in perspective the industry’s capacity to pay. To achieve this in its first session during November 1948, the Central Advisory Council appointed a Tripartite Committee of Fair Wage. This committee came up with the concept of Minimum Wages
4/1/2015 10:43:02 AM
52
1920: Mr. K.G.R. Choudhary recommended setting up boards for determining minimum wages for each industry.
1928: International Labour Conference implemented system to fix wages for different trades. However, the practice was not put into legislation in India.
1943: Standing Labour Committee, a Labour Investigation Committee was appointed on the recommendation of Indian Labour Conference (ILC), 1943 to look into conditions of labour in terms of their wages, housing, social conditions, and employment.
1945: The first bill on minimum wages was drafted in ILC.
4/1/2015 10:43:02 AM
Straight piece work
Straight Piecework Plan-Incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces. Differential Piece Rates-Incentive pay in which the piece rate is higher when a greater amount is produced.
4/1/2015 10:43:02 AM
standard hour plan
A standard hour plan is an incentive pay plan which establishes a fixed unit of time for completion of a task or job. An employee receives the wage for the standard unit of time for completion of the task without regard to the actual time needed…………….
4/1/2015 10:43:02 AM
55
For example, assume that in an automobile repair shop the standard time for replacing a muffler is one hour. Under a standard hour plan an employee would receive one hour's wage for replacing a muffler, regardless of the actual time required. Such a plan requires accurate measurement of time necessary for each job or task
4/1/2015 10:43:02 AM
Compensation of employees
Compensation of employees (CE) is a statistical term used in national accounts, balance of payments statistics and sometimes in corporate accounts as well. It refers basically to the total gross (pre-tax) wages paid by employers to employees for work done in an accounting period, such as a quarter or a year
4/1/2015 10:43:02 AM
Objectives of compensation
To be precise, Compensation is what an employee gets in return to his contribution to the organization. The term compensation includes pay, incentives, and benefits offered by the employers for hiring the services of employees. Compensation planning plays an important role in any HR department’s efforts to obtain, maintain and retain an effective workforce. Compensation planning follows a set of objectives.
4/1/2015 10:43:03 AM
Wage vs. Salary
The difference between wage and salary defines more than how much you end up making per year. We use the terms to often describe differences in types of work, as well as what is actually counted in the final total.
Wages are generally paid per hour. This means that you have to be present and working in order to get paid. Most of the time, wage jobs are not as inclusive when it comes to things like paid vacations, or paid sick days. Wage earners often have to give up pay for leaving early, coming in late, missing a day, or taking a vacation.
4/1/2015 10:43:03 AM
