Various concept of wages under the Minimum Wages Act, 1948.

Various concepts of wages or types / kinds of wages under the minimum wages act, 1948.

In order to know about the types of wages, we need to understand about the wage - structure.

In general, wages can be categorized into three main types:-

1) Minimum Wage. 

This wage provides bare subsistence and is at poverty-line level.

2) Fair Wage.

This wage is little above than minimum wages.

3) Living Wage.

This wage provide comfort level.

Important Case Law:-

Kamani Metals and alloys Vs. Their Workmen.

As per this case, Supreme Court states certain principles on which wages are fixed:-

The first principle states that, minimum wages should be paid irrespective of Company's extent of profit, financial condition of establishment and availability of workmen. Minimum wages are the lowest limit of wages and the rate of these wages cannot further sink. Minimum wages are independent wages and it applies to all industries whether big or small.

The second principle states that, Fair wages are given depending upon the earning capacity and workload of a company. Fair wages are sufficiently high and can provide a standard family with food, shelter, clothing, medical care, and education of children.

The third principle states that, Living wages are sufficient to provide all the essentials provided by the fair wages also it provides frugal comfort (example for old age and evil days).

Reference  :-

Textbook - Labour and Industrial Laws, 29th Edition by S.N. MISRA