WAGES The payment made to labour for its work is called wages in economics Wages are the price for the services of the labour.Generally, by labour, we mean physical or manual work. In economics, labour includes not only the physical work but all types of work whether it is mental or physical. In other words, by labour we mean the work done both by hand and brain. So the reward given to workers, whether mental or physical, are termed as wages in economics.Definition of Wages * According to Benham “ A wage may be defined as a sum of money paid under contract by an employer to a worker for the services rendered.” * According to Prof. J.L Hanson “Wage is a payment to a labourer for its assistance to production”.