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Questions and Answers
What is the basic wage level that provides only bare subsistence?
According to the Supreme Court, what is the significance of the minimum wage?
What principle emphasizes that wages should be high enough to provide a standard family with necessities?
How does the 'fair wage' relate to a workman's earning capacity?
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What is the main difference between 'fair wage' and 'living wage'?
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What principle ensures that wages should not fall below a certain limit for all workers?
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Who is considered an employee as per the given definition?
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What did the court mention about hopeful observations made in the director's annual report?
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In the case of Transport Corporation of India Ltd. v. State of Maharashtra, who is responsible for fixing the minimum rates of wages?
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According to the Fair Wage Committee, what should the 'living wage' provide for?
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Who fixes the minimum rate of wages according to the text?
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Which of the following is excluded from the definition of an employee as per the text?
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What characterizes an employee who is declared as such by the appropriate Government?
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What differentiates an outworker from a regular employee under the given definition?
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Under Section 7(4), are employers allowed to recover amounts from employees under any law other than the Railways Act, 1989?
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According to the definition, what distinguishes an outworker from a regular manual or clerical worker in scheduled employment?
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In the case of Municipal Corporation v. N.L. Abhyankar, what did the Labour Court order regarding the collection of levies from employees?
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What is the maximum percentage of wages that can be deducted in any wage period for payment to Co-operative Societies under Clause (j) of Section 7(2)?
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If the total deductions authorized under Section 7(2) exceed the limits specified, how can the excess be recovered?
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What is the role of courts or tribunals in determining fair wages?
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Can an employer make deductions from an employed person's wages beyond what is permitted by the Act?
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'Living wage' enables a male earner to provide for which of the following according to the Fair Wage Committee?
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What action did the employer take in response to the representative Union's request to collect levies from employees?
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What is the method known as when fixing minimum wages under Sec. 5(1)(b)?
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When will the proposals for fixing minimum wages be published in the Official Gazette under the Notification Method?
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What will the appropriate Government do after considering representations received regarding minimum wages?
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When will the new wage rates come into force according to the Notification Method?
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What happens if no specific date is mentioned in the notification fixing or revising minimum wage rates?
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Study Notes
Wages and Wage Structure
- Mere hopeful observations in the director's annual report cannot be the basis for awarding increased wages.
- The Labour Court or Tribunal does not fix the minimum rates of wages, as it is the government's responsibility.
- The courts or tribunals ascertain the minimum rates of wages for the purpose of deciding 'fair wages'.
Living Wage
- The Fair Wage Committee in 1949 defined the 'living wage' as enabling the male earner to provide for himself and his family, including:
- Bare essentials of food, clothing, and shelter
- A measure of frugal comfort
- Education for children
- Protection against ill-health
- Requirements of essential social needs
- A measure of insurance against misfortunes, including old age
Deductions from Wages
- Total deductions from an employee's wages in any wage period shall not exceed:
- 75% of wages in cases where deductions are wholly or partly made for payment to Co-operative Societies
- 50% of wages in any other case
- Excess deductions can be recovered in a manner prescribed by law
- An employer is not precluded from recovering from an employee's wages any amount payable under any law other than the Railways Act, 1989.
Concepts of Wages
- Wage structure can be divided into three categories:
- Minimum wage (bare subsistence, poverty line-level)
- Fair wage (a little above minimum wage, providing a standard family with basic needs)
- Living wage (comfort level, exceeding fair wage)
- Principles on which wages are fixed, as stated by the Supreme Court:
- Minimum wage, independent of industry or profitability
- Fair wage, related to the employee's earning capacity and workload
Employee Definition
- An "employee" means any person employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in a scheduled employment with fixed minimum rates of wages.
- Includes outworkers and those declared as employees by the appropriate Government.
- Excludes members of the Armed Forces of the Union.
Fixing Minimum Wages
- Method of fixing minimum wages:
- Notification Method (Section 5(1)(b))
- Appropriate Government publishes proposals in the Official Gazette, considers representations, consults the Advisory Board, and fixes or revises minimum wages by notification.
- New wage rates come into force on a specified date or after three months from the date of notification.
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Description
Explore the concepts of wages and wage structure, including the categories of minimum wage, fair wage, and living wage. Understand the principles used to determine wages through real-world examples.
