WageWageWageWageAmi pandyaAmi pandya

What is salary and wages?

• Salary is best associated with employee compensation quoted on an annual basis.

• Wages is best associated with employee compensation based on the number of hours worked multiplied by an hourly rate of pay.

Objectives of wage and salary Administration

• To establish fair and equitable remuneration• To attract competent personnel• To retain the present employees• To improve productivity• To improve union management relations• To improve public image of the company

Three important methods of wage payment

• Time Rate System:-

• Piece Rate System:-

• Incentive Wage Plan:-

Types of wage fixation• There are three types of wage fixation:

1.Fair wage

2.Living wage

3.Minimum wage

Living Wage• The normal needs of employee,

regarded as a human being living in civilized community.

• Sufficient to insure the workmen food, shelter, clothing, frugal comfort, provision for evil days.

• The pauper and poverty level• The minimum of

subsistence(support) level• The minimum of health and

comfort level.

Fair Wage• “ A step towards the progressive

realization of a living wage.”

The concept of minimum wage

• “ A minimum wage is that wage which is sufficient to cover the bare physical needs of worker and his family.”

Introduction• Passed in 1948 to secure the welfare of the

unorganized workers in certain industries by fixing the minimum rates of wages.

• The act empowers the appropriate Government for fixation of minimum wages in employments enumerated in the schedule of the act.

• The fixation of minimum of wages relates to the industries where sweated labor is most prevalent or where there is inevitable chance of exploitation.

wages for overtime (sec14)

• When workers works for more then nine hrs or for 48 hrs in any week .

Wages for less than the normal working

day(sec15)

• Where his failure of work is caused by his unwiilingness to work &not by omision of the employer .

Preamble to the Act

Section 1• This Act may be called the

minimum wage act 1948.• It extend to whole India.

Section 2:Interpretation • (a)Adolescent (14-18)• (aa)Adult • (b)Appropriate Government

– Central and state govt.

• (bb)Child ( below 14)• (c) Competent Authority• (d) Cost of living index• (e) Employer• (f) Prescribed• (g) Scheduled employment• (h) Wage

Section :3 Fixing rates of wages

• Minimum time rate• Piece of work• Guaranteed time rate• Overtime

Section 4: minimum rate of wage

• According to section 2(h) following items can not be refer to check minimum wage.– The value of any house,

Accommodation, Supply of light, water, medical care allowances.

– Pension fund or provident fund or social insurance

– Travel allowance– Gratuities

Procedure for fixing and revising minimum

wages

• Section 7: Advisory Board• Section 8:Central Advisory Board• Section 9: Composition of

committees• Section 10:Correction of errors• Section 11: Wages in kind

Section 13: Fixing hours for a normal

working day.• With regards of appropriate

government– Fix the number of hours of work

which shall constitute normal working day, inclusive of one or more specified intervals.

• Provide for a day of rest in every period of seven days which shall be allowed remuneration in respect of such days of rest.

Section 14: Over time• Adult 9 hour• Child 4 ½

Section 16:• According to classes

Section:17• Piece of work (according to time

payment)

Section:18• Maintenance of registers and

records.– Overtime– In and Out time– Quantity of work

• Section 19: Inspector• Section 20: Claim• Section 28: Power of Central

government as to the carrying in to execution of this act in the state