Sei sulla pagina 1di 5

Wage Policy

Wage Policy are principles acting as guidelines for determining a wage structure. Initially as an economic issue it was mainly the concern of the employer while state was adopting laissez faire policy. But, with the industrial progress and subsequent industrial balance between employers, employees, wage bargain has become a matter for three fold concern of the employer, employee, and the state In India it is built around certain cardinal principles: Equal pay for equal work i!ing wages for all workers so that they lead a decent life Payment of wages on appointed dates without unauthori"ed deductions #esol!ing wage related issues through collecti!e bargaining Payment of statutory bonus at $.%% percent as per legal pro!isions Ensuring a fair, equitable wage plan for !arious employees without significant wage differences. &he capacity to pay'according to supreme court ruling( )an employer who cannot pay minimum wages has no right to e*ist+ ,etermining fair wages o!er and abo!e minimum wages with due regards to 'i- the producti!ity of labour 'ii- the pre!ailing le!el of wages 'iii- the le!el of national income and distribution 'i!- the place of industry in the economy of the company. &o compensate for the rise in cost of li!ing

Economic .b/ecti!es of Wage Policy: 0ull employment and optimum allocation of all resources &he highest degree of economic stability consistent with an optimum rate of economic progress 1a*imum income security for all sections of the community 2ocial .b/ecti!es of Wage Policy: &he elimination of e*ceptionally low wages &he establishment of )fair+ labour standards &he protection of wage earners from the effects of rising prices &he incenti!e for workers to impro!e their producti!e performance Wage Policy is a democratic set up so it cannot be enforced by the 3o!t alone. Its implementation has to be secured through employers and employees organi"ations at bargaining table i.e. by consensus imitations of Wage Policy: 2ocio(economic setup of our society Enforcement in unorgani"ed sector ack of unity among unions Prices rise almost beyond 3o!t+s regulatory capabilities Wages lag far behind labour producti!ity esser number of workers in organi"ed sector take away bulk of wages than unorgani"ed Wage incomes are consumption oriented rather than sa!ings oriented so increased wages would mean increased consumption. &herefore economic growth may not be affected positi!ely as it depends upon rate of in!estment possible through sa!ings.

E!er increasing addition to workforce yet dearth of skilled labour 4igh wages may force employer to shift towards capital intensi!e methods 4igh wages reduce capital for growth Wage Policy in India 0irst 0i!e 5ear Plan '6786(89- suggested: Pre(war le!els of real wages be restored as a first step towards )li!ing wages+ through increased producti!ity #eduction of disparities in income #eduction of gap between e*isting and li!ing wages 2tandardi"ation and maintenance of wage differentials to pro!ide incenti!es 2econd 0i!e 5ear Plan '6789(96- stressed: Impro!ement in wages through increased producti!ity Impro!ed layout of plants, working conditions :pplication of system of payment by result Impro!ement in management practices #ecommended settlement of industry wise wage disputes through tripartite wage boards &hird 0i!e 5ear Plan '6796(99- reinforced: Wage policy of preceding two plans #ationali"ation of work load; work methods and functions of management &hree :nnual plans '6799(97- aims at framing Wage Policy after taking considering: Price le!el Employment le!el

2ocial <ustice =apital required by firm for future growth 0ourth 0i!e 5ear Plan '6797(>?- emphasi"ed: Price stability E*tension of system of payment by results 0ifth 0i!e 5ear Plan '67>?(>7- recommended: &hat the reward system in terms of wages and non(wage benefits must be related to performance records : wage structure to narrow down disparities within the organi"ed sector itself. 3o!t. to inter!ene in setting up of wages @ prices 2i*th 0i!e 5ear Plan '67$A($8- stressed on: &he need for bringing about a greater rationali"ation of wage structure and linking of wages at least in some measure to labour producti!ity. 1oderni"ation in industry E!ol!e wage structure without restrictions on negotiations 2e!enth 0i!e 5ear Plan '67$8(7A- asserted that: &here is a need for impro!ement in capacity utili"ation, efficiency and producti!ity #ise in le!els of real income #eduction in disparities 2ectoral shifts in desired directions Eighth 0i!e 5ear Plan '677B(7>- focused on:

0ormulation of wage policy relating to child labour, bonded labour, rural labour, women labour and inter(state migrant labour.