COMPENSATION MANAGEMENT

Presented byGauri Mathur Heena Mehendiratta Jyotsana Prasad Vivek Dwivedi

Concepts of Wages
Minimum Wages Fair Wages Living wages

"Wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, expressed or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment.

Wages Policy in India

Payment of Wages Act, 1936 Industrial Dispute Act, 1947 Minimum Wages Act, 1948 Equal remuneration Act, 1976 Payment of Bonus Act, 1965 Wage Board

Influencing factors of Remuneration

Remuneration

External Labour Market Cost of Living Labour Unions Govt. Legislations Society Economy

Internal Business Strategy Job evaluation & PA The Employee

Challenges of remuneration
Skills-based pay Salary reviews

Remuneration Employee participation

Pay secrecy

Comparable worth

Payment of wages act 1936

OBJECTIVES
Regulating payment of wages Imposing fines/deduction from wages Laying down `Wage period` Time and Mode of payment of wages

Wages Act-Scope
Factory Railway Central/State Government establishment Any industrial establishment

Wages Act-Employers Obligations

Wage Period Time Daily, Weekly, Fortnightly, Monthly 7th day after wage period [working day],10thday [employees more than 1,000] Nominee Prescribed returns/register

Death of employee Returns/Register

COVERAGE OF EMPLOYEES

Drawing average wage upto Rs.6500 pm as amended with effect from 6th September 2005.

WAGES TO BE PAID IN CURRENT COINS OR CURRENCY NOTES

a. b.

All wages shall be paid in current coins or currency notes or in both. After obtaining the authorization, either by Cheque or by crediting the wages in employees banks Account {Section 6} Andhra Pradesh State Amendment: Provided further that the State Government may, by notification in the Andhra Pradesh Gazette, specify the industrial establishments , the employers of which shall pay to the persons employed therein, the wages either by cheque or by crediting the wages in their bank account-[Vide Andhra Pradesh Act 15 of 1982, sec.2 (w.e.f 7-10-1982).

Wages Act-Permissible Deductions

Permissible deductions
Absence from duty [proportionate] Fines Damages/loss caused Recovery of Advances TDS Employees` ESIC, PF Contributions, LIC premium Amenities provided Orders of Court [Recovery] Maximum %age of deductions permissible Maximum deductions 50% 75% contribution to Cooperatives

DEDUCTION MADE FROM WAGES

Deductions such as, fine, deduction for amenities and services supplied by the employer, advances paid, over payment of wages, loan, granted for house-building or other purposes, income tax payable, in pursuance of the order of the Court, Provident Fund contributions, cooperative societies, premium for Life Insurance, contribution to any fund constituted by employer or a trade union, recovery of losses, Employees State Insurance contribution etc. (Section 7). Absence for whole or any part of the day If ten or more persons absent without reasonable cause, deduction of wages up to 8 days {Section 9} Deductions for recovery of Advance. Deduction for recovery of loans. Deductions for payment to co-operative societies and Insurance schemes.

AUTHORITIES UNDER THIS ACT

INSPECTORS. AUTHORITY TO HEAR CLAIMS. Any commissioner for Workmens Compensation; or Any Regional Labour Commissioner. Any Assistant Labour Commissioner. Presiding Officer of any Labour Court or Industrial Tribunal.

The Minimum Wages Act 1948

Introduction
Passed in 1948 to secure the welfare of the unorganized workers in certain industries by fixing the minimum rates of wages. The act empowers the appropriate Government for fixation of minimum wages in employments enumerated in the schedule of the act. The fixation of minimum of wages relates to the industries where sweated labor is most prevalent or where there is inevitable chance of exploitation.

Broad Features of the Act

1. The act lays down the principles for fixation of :
A minimum time rate of wages A minimum piece rate A guaranteed time rate An overtime rate for different occupations, localities or classes of work and for adults, adolescents, children and apprentices.

2. The minimum wages may consist of:

A basic rate of wages and a cost of living of allowances A basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of essential commodities supplied at concessional rates.

Terms
Adult, Adolescents and child. [Sec 2(a)] Appropriate Government [Sec 2(b)] Competent Authority [Sec 2(c)] Cost of living index Number [Sec 2(d)] Employer [Sec 2(e)] Scheduled Employment [Sec 2(g)] Wages [Sec 2(h)] Employee [Sec 2(i)]

The Minimum Wages Act 1948

SCOPE/COVERAGE
Whole India All establishments with one or more employee [include `out-worker`] Minimum Wages = Salary + Dearness Allowances

Authorized Deduction
The wages shall be paid without deduction of any kind except those allowed by rules and notifications. The deductions are: Fines, Deduction for absence from duty, Deduction for damage or loss caused on a/c of the neglect, Deduction for house accommodation and amenities, Deduction of income tax payable by the employee, Provident fund subscription.

     

The Minimum Wages Act 1948

ADMINISTRATION
It consists of representatives of the employers, employees & the independent persons (up to 1/3rd of the total strength) nominated by central Govt. Two main functions of this board are -

Central

Advisory

Board

1.For advising Minimum wages 2.Co-ordination between Central and State Govt.

The Minimum Wages Act 1948

FIXATION OF MINIMUM WAGES
Recommendation of Advisory Board for different class [Unskilled, skilled, Clerk, Supervisor]

Publication of recommendation/proposal in Newspapers [For public comments/representations from Trade Unions etc.]

Hearing of the Representatives etc

Minimum wages notified

Payment of Minimum Wages..

Wages in kind(sec.11)- minimum wages under this Act must be paid in cash. but this section authorized the payment of minimum wages in kind. Custom to pay wages wholly or partly in kind. Authorization must be made by notification in the Official Gazette. Provision of essential commodities at confessionals rates.

Wages for overtime (sec14)

When workers work for more then nine hrs or for 48 hrs in any week .

Wages for less than the normal working day(sec 15)

Where his failure of work is caused by his unwillingness to work & not by omission of the employer .

Wages for two or more classes of work (sec16)

Where to each employee a different minimum rate of wages is applicable

Minimum time rate wages for piece work (sec17)

Employer shall pay to such an employee wages at not less than the minimum time rate

Maintenance of registers & records (sec18)

Registers shall give particulars of employees given by him Work performed by them Overtime work Gross wages ,deductions made etc

Penalties (Sec22)
An employer who pays to any employee less than the prescribed minimum rate of wages or infringes may be punished for Imprisonment up to a time period of six months. With fine up to 500 Rs. Or both of them.

The Equal Remuneration Act 1976

INTRODUCTION

The principle of equal work to men and women worker has been gaining increasing acceptance all over the world. In many countries, law have been passed prohibiting discrimination between men and women in matters relating to payment of wages for similar work. The State Policy article 39 of the Constitution envisages that the State shall direct its policy, among other things, towards securing that there is equal pay for equal work for both men and women. The International Womens Year, President of India promulgated the Equal Remuneration Ordinance, 1975 on 26th September, 1975 to provide for the payment of equal remuneration to men and women workers

THE EQUAL REMUNERATION ACT 1976

OBJECTIVE
To provide for Equal remuneration for men and women To prevent gender discrimination in employment

THE EQUAL REMUNERATION ACT 1976

SCOPE AND COVERAGE
Whole of India Almost every kind of establishment Exception Special treatment to women under various laws [child birth, terms and conditions marriage, death] Notified by Govt. remuneration on basis other than sex

THE EQUAL REMUNERATION ACT 1976

ADMINISTRATIVE AUTHORITY
1.Administered by Central/State Govt. 2.Advisory Committee to Central/State Govt. 3.Appointment of Inspectors by Central/State Govt. 4.Some posts may be reserved for women
o

Principals of Girls College, Hostel s etc.

THE EQUAL REMUNERATION ACT 1976

EMPLOYERS OBLIGATIONS
o

Equal wages for equal work No discrimination (gender discrimination)[`same work` or `similar nature of work` reasonable classification based on intelligible criteria having nexus with objective sought to be achieved is permissible] No discrimination on recruitment [Exemption SC/ST] Maintenance of Registers

Prohibition of discrimination in recruitment or other condition of service(sec 5)

This Act, no employer shall while making recruitment for the same work or work of a similar nature, or in any condition of service subsequent to recruitment such as promotions, training or transfer, make any discrimination against women except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force: Provided that the provisions of this section shall not affect any priority or reservation. for Scheduled Castes or Scheduled Tribes, ex-servicemen, retrenched employees or any other class or category of persons in the matter of recruitment to the posts in an establishment or employment.

Advisory Committee (increasing employment opportunities for women)

Every Advisory Committee shall consist of not less than ten persons, to be nominated by the appropriate Government, of which one-half shall be women. Every Advisory Committee shall consist of not less than ten persons, to be nominated by the appropriate Government, of which one-half shall be women. The Advisory Committee shall regulate its own procedure. The appropriate Government may, after considering the advice tendered to it by the Advisory Committee and after giving to the persons concerned in the establishment or employment an opportunity to make representations, issue such directions in respect of employment or women workers, as the appropriate Government may think fit.

Authorities for hearing and deciding claims and complaints

The appropriate Government may, by notification, appoint such officers, not below the rank of a Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and deciding

Thank You