WAGE BOARD

PRESENTED BY
A. JANE SHEKINAH
II MSW (HR)
WAGE BOARD
 Wage board is a triplicate body, having representation of employers and labour besides,
independent members. The representatives of the former two interests are nominated by
their central organizations; others are nominated by the government. It is an important
machinery of state regulation of wages.

 The first wage board was set up in 1957 in the Cotton Textile Industry. Following this,
Wage Boards were set up for working journalists, sugar, cement, jute, tea plantation,
rubber and coffee, coal mining, iron and steel, road transportation and electricity
undertakings.

 It is established to tackle the disputes relating to employers and employees. Set up by the
Government of India for fixation and revision of salary across different industries.
DEVELOPMENT OF WAGE BOARD

 1950s-1960s:- Government constituted various wage boards for wage fixation

 1957:- First wage board was setup for cotton textile industries during the first
five-year plan

 2000:- Fifth wage board was setup for working journalist and other newspaper
employees under the working journalist and other newspaper employees and
miscellaneous provision act, 1955

 30 Wage boards was setup so far by government.

While determining the wage structure for an
industry following factors are considered:

Need-based minimum wage.

 Industry's capacity to pay.
Productivity of labour
Requirement of social justice.
Adjustment of wage differentials in such manner as to provide incentives
for skill formation.
 
FUNCTIONS OF WAGE BOARD

Hours of Recommending
work the minimum
wage

Gratuity

Differential
cost of living Regional wage
compensation differentials
OBJECTIVES

To align the wage settlements with the social and economic policies of the
Government

To standardize wage structure throughout the industry concerned

To evolve a wage structure based on the need for adjusting wage differentials in
a manner to provide incentives to workers for advancing their skill

To workout a system of payment by results

To work out wage structure based on the principles of fair wages as formulated by the
Committee on Fair Wages

To evolve a wage structure based on the requirements of social justice.

COMPOSITION OF WAGE BOARD
 It is a tripartite representing the interests of labour, management and the public.

 Labour and management representatives are maintained in equal numbers by the

government.

 These board are chaired by government nominated members representing the

public
How to appoint members to wage boards?

Members to wage boards can be appointed only with the consent of employers and
employees. The representatives of employers on the wage boards are the nominees of
employers’ organization and the workers’ representatives are the nominees of the
national center of trade unions of the industry concerned.
 Wage structure in India
Pay structure in India = Basic pay + Dearness allowance + HRA + Overtime pay.

The employee benefit package normally contains apart from basic pay, a dearness
allowance, overtime payment, annual bonus and incentive systems
Using wage boards to raise pay