Type of wages
The main types of wages are:
1. Subsistence wage;
2. Minimum wage;
3. Fair Wage; and
4. Living Wage
Subsistence Wage: - The wage that can meet only bare physical needs of a worker and his family is called subsistence wage.
Minimum Wage: - Minimum wage is the wage that is able to provide not only for bare physical needs but also for preservation of efficiency of worker plus some measure of education, health and other things.
Fair Wage:- Fair wages is an adjustable step that moves up according to the capacity of the industry to pay, and the prevailing rates of wages in the area of industry.
Living Wage:- Living wage is that which workers can maintain the health and decency, a measure of comfort and some insurance against the more important misfortune of lie.
In any even the minimum wage must be paid irrespective of the extent of profits, the financial condition of the establishment or the availability of workmen at lower wages.
The wages must be fair, i.e. sufficiently high to provide standard family with ,food, shelter, clothing, medical care and education of children appropriate to the workmen.
A fair wage lies between the minimum wage and the living wage which is the goal.
Wages must be paid on an industry wise and region basis having due regard to the financial capacity of the unit.
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