Professional Documents
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Unit 1 - Wage & Theoty
Unit 1 - Wage & Theoty
The reasonable cash value of remuneration paid in any medium other than
cash shall be estimated and determined in accordance with rules prescribed
by the board.
The value of room and board, if set by agreement between the employer
and employee, must be reported as wages. Where there is no agreement,
the department uses the minimum values assigned to room and board as
established under the wage and hour program
Type of wages
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.
Theory of Wages
1. Subsistence theory
2. Wages fund theory
3. The surplus value theory of wages
4. Residual claimant theory
5. Marginal productivity theory
6. The bargaining theory of wages
7. Behavioural theories
1. Subsistence theory
7. Behavioural Theories
Profit Sharing