15114406 Wage Policy in India

8/7/2019 15114406 Wage Policy in India

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CONCEPT OF WAGE

MeaningImportance

How its different from compensation, income and salary

Types of wagesMethods of wage payment


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PAYMENT OF WAGES ACT1936

y OBJECTIVES

Regulating payment of wages

Imposing fines/deduction from wages

Laying down `Wage period`

Time and Mode of payment of wages

To prevent malpractices by employers.


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Scopey This acts applies to those persons employed directly or

indirectly in

1. Factory

2. Railway

3. Air Transport Services

4. Mines or oil field

5. Workshop in which articles are manufactured orproduced

6. State / Central Government establishment


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Coveragey

Applies to employees drawing wages upto 6500 Rs.y This limit will be suitably increased by central

Government after every 5 years.

y

Wages means all remuneration expressed in terms ofmoney and includes remuneration payable under anyaward or settlement, overtime wages ,wages for holidayand any sum payable on termination of employment

(bonus is not included).


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Employers Obligations

y Fixation of wage period- Daily, Weekly, Fortnightly, Monthly

y Time of payment- 7th day after wage period [working day]

y 10th day [employees more than 1,000]

y

Mode of payment-Coins and currency notesy Payment in Case of Death of Employee Nominee or

prescribed authority

y Returns/Registers and Records-To file annual return by

the 15

th

Feb. of following year.


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Permissible Deductionsy

Maximum deductions

50%;

wherecontribution to Cooperatives - 75%y Grounds - Absence from duty Fines

Damages/loss caused Recovery of Advances TDS Employees` ESIC, PF Contributions, LIC

premium Amenities provided Court Orders [Recovery]


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THE MINIMUM WAGES ACT1948

OBJECTIVES

To provide for Minimum wages for certain

employees

To stop exploitation of labour

The acts also provides for maximum daily

hours, weekly rest day and overtime


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fixing minimum wages

By The Government-y The no. of working hours in day with one or more

intervals.

y

Provide for a paid rest day in every period of 7 daysy The minimum wages rates will be different for

different classes of employees- skilled, semi skilled,unskilled .


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TerritoryofDelhi - Minimum wages


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Obligations of Employersy Payment of minimum wages- The employer is bound to

pay to every employees minimum wages.

yWages in cash-wages should be paid in cash.

y Overtime Wages-Twice the normal wages.

y

Payment of Undisbursed amount- On account of deathof employee then same shall be deposited to prescribedauthority.


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Penalties

Payment of Wages less than fixed minimumwages

y Imprisonment upto 6 months or fine upto Rs.

5oo or both

Contravention of any Rule or order

y

Fine upto Rs. 500


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Determinants of wages


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Flaws In Indian Wage System

y

Wages are not decided by market forces instead theyare decided by institutions.

y

Implementation of laws is not proper.

yWages in organized sector are fix but in unorganized

sector in Indian wages are not fixed.


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contdy

Piece wage system should be introduced instead fixwage system so that competitive prices of products canbe introduced.

y Organization should revised wage as per marketconditions.

15114406 Wage Policy in India

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