Concepts of Wages Wage-Structure
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Questions and Answers

What is the basic wage level that provides only bare subsistence?

  • Standard wage
  • Living wage
  • Minimum wage (correct)
  • Fair wage

    • According to the Supreme Court, what is the significance of the minimum wage?

  • Independent of profits or financial condition (correct)
  • Varies based on industry size
  • Dependent on availability of workmen
  • Dependent on the financial condition

    • What principle emphasizes that wages should be high enough to provide a standard family with necessities?

  • Fair wage principle (correct)
  • Minimum wage principle
  • Living wage principle
  • Earning capacity principle

    • How does the 'fair wage' relate to a workman's earning capacity?

    <p>Is proportional to the earning capacity</p> Signup and view all the answers

    What is the main difference between 'fair wage' and 'living wage'?

    <p>'Fair wage' is poverty line-level while 'living wage' is a little above</p> Signup and view all the answers

    What principle ensures that wages should not fall below a certain limit for all workers?

    <p>Minimum wage principle</p> Signup and view all the answers

    Who is considered an employee as per the given definition?

    <p>Someone who works from home on materials provided by another person</p> Signup and view all the answers

    What did the court mention about hopeful observations made in the director's annual report?

    <p>They are sometimes made to inspire hope and confidence in shareholders.</p> Signup and view all the answers

    In the case of Transport Corporation of India Ltd. v. State of Maharashtra, who is responsible for fixing the minimum rates of wages?

    <p>Government</p> Signup and view all the answers

    According to the Fair Wage Committee, what should the 'living wage' provide for?

    <p>A measure of frugal comfort, education for children, protection against ill-health, social needs, and insurance against major misfortunes</p> Signup and view all the answers

    Who fixes the minimum rate of wages according to the text?

    <p>Government</p> Signup and view all the answers

    Which of the following is excluded from the definition of an employee as per the text?

    <p>Armed Forces members working for hire.</p> Signup and view all the answers

    What characterizes an employee who is declared as such by the appropriate Government?

    <p>Their employment status is recognized by official decree.</p> Signup and view all the answers

    What differentiates an outworker from a regular employee under the given definition?

    <p>The outworker processes materials for business purposes at home or other premises.</p> Signup and view all the answers

    Under Section 7(4), are employers allowed to recover amounts from employees under any law other than the Railways Act, 1989?

    <p>No, except under the Railways Act, 1989</p> Signup and view all the answers

    According to the definition, what distinguishes an outworker from a regular manual or clerical worker in scheduled employment?

    <p>Outworkers only work on materials provided by another person for sale purposes.</p> Signup and view all the answers

    In the case of Municipal Corporation v. N.L. Abhyankar, what did the Labour Court order regarding the collection of levies from employees?

    <p>To collect levies as requested by the Union</p> Signup and view all the answers

    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)?

    <p>75%</p> Signup and view all the answers

    If the total deductions authorized under Section 7(2) exceed the limits specified, how can the excess be recovered?

    <p>In such manner as may be prescribed</p> Signup and view all the answers

    What is the role of courts or tribunals in determining fair wages?

    <p>Ascertaining minimum rate of wages for fair wages</p> Signup and view all the answers

    Can an employer make deductions from an employed person's wages beyond what is permitted by the Act?

    <p>No, only deductions permitted by the Act are allowed</p> Signup and view all the answers

    'Living wage' enables a male earner to provide for which of the following according to the Fair Wage Committee?

    <p><strong>Frugal</strong> comfort, education for children, protection against ill-health</p> Signup and view all the answers

    What action did the employer take in response to the representative Union's request to collect levies from employees?

    <p>Refused to collect any levies</p> Signup and view all the answers

    What is the method known as when fixing minimum wages under Sec. 5(1)(b)?

    <p>Notification Method</p> Signup and view all the answers

    When will the proposals for fixing minimum wages be published in the Official Gazette under the Notification Method?

    <p>2 months from the date of notification</p> Signup and view all the answers

    What will the appropriate Government do after considering representations received regarding minimum wages?

    <p>Consider representations and consult the Advisory Board</p> Signup and view all the answers

    When will the new wage rates come into force according to the Notification Method?

    <p>As specified in the notification</p> Signup and view all the answers

    What happens if no specific date is mentioned in the notification fixing or revising minimum wage rates?

    <p>Rates come into force after 3 months</p> Signup and view all the answers

    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.

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