MEANING AND DEFINITION OF MINIMUM WAGES
Minimum Wages means the minimum payment to a worker so that he may be able in providing for basic needs for himself and his family members and to maintain his working efficiency only. Some other scholars are of the view that minimum wages should also provide for minimum education, medical facilities and other amenities. According to them, minimum wages should ensure a minimum standard of living considering the health, efficiency and well-being of the worker.
"Minimum Wages should provide not only for the bare necessities of the worker. It should also provide for the maintenance of the efficiency of the worker. From this point of view, minimum wages must be sufficient to provide for all requirements of education, health and other essential "amenities".
Fair Wages Committee,
Principles of Determination of Minimum Wages
Following are the principles that should be followed while determining Minimum Wages
1. Principle of Equality:
According to this principle, all the workers doing the same work and having equal ability and experience must be paid equal wages. This Principle does not mean equal wages for all. It only means that all the workers in the same industry having equal efficiency and experience, should get equal wages.
2. Principle of paying capacity of the Industry:
While determining minimum wages for the workers, paying capacity of the industry should also be considered because the wages to be paid should not prove a burden upon the industry.
3. Principle of a standard of living:
While determining minimum wages, the principle of the standard of living should also be followed. The wages should be enough to provide for the bare necessities and essential amenities for the workers. From this point of view, different wages may be determined for different places and different industries. In addition to this, rates of wages should be modified from time to time.
The 15th Indian Labour Conference (1957) laid down the following norms as a guide for determining Minimum Wages :
(i) In calculating the minimum wage, the standard working-class family should take to comprise three consumption units for one earner; the earnings of women, children and adolescents should be disregarded.
(ii) Minimum food requirements should be calculated on the basis of a net intake of 2,700 calories, as recommended by Dr Aykroyd for an average Indian adult of moderate activity.
(iii) Clothing requirements should be estimated at a per capita consumption of 18 yards per annum, which would give the average worker's family of four, a total of 72 yards per annum.
(iv) In respect of housing, the norm should be the minimum rent charged by the government in any area for houses provided under the subsidised Industrial Housing Scheme for low-income groups.
(v) Fuel, lighting and other miscellaneous items of expenditure should constitute 20% of the total minimum wage.
