CONCEPTS OF WAGES
While evolving, wage policy, three concepts of wages, namely:
Minimum wage is the one which provides not merely for bare sustenance of life, but also for the preservation of the efficiency of the worker. For this purpose. The minimum wage must also provide for some measure of education, medical requirements and amenities.
Fair Wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for traders in general.
Living wage is a step higher than fair wage. Living wage may be described as one which should enable the wage earner to provide for himself/herself and his/ her family not only the hare essentials of life like food. clothing and shelter; but a measure of frugal comfort including education for children; protection against ill health; requirements of essential social needs; and/or measure of insurance against the more important misfortunes including old age.
A living Wage must be fixed considering the general economic conditions of the country.
The concept of living wage, therefore, varies from country to country. In the more advanced countries, living wage itself forms the basis for the minimum wage.
While evolving, wage policy, three concepts of wages, namely:
Minimum wage is the one which provides not merely for bare sustenance of life, but also for the preservation of the efficiency of the worker. For this purpose. The minimum wage must also provide for some measure of education, medical requirements and amenities.
Fair Wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for traders in general.
Living wage is a step higher than fair wage. Living wage may be described as one which should enable the wage earner to provide for himself/herself and his/ her family not only the hare essentials of life like food. clothing and shelter; but a measure of frugal comfort including education for children; protection against ill health; requirements of essential social needs; and/or measure of insurance against the more important misfortunes including old age.
A living Wage must be fixed considering the general economic conditions of the country.
The concept of living wage, therefore, varies from country to country. In the more advanced countries, living wage itself forms the basis for the minimum wage.