1. LAWS RELATED TO WAGES

2. Introduction
• Employee compensation is a vital part of
human resource management.
• Wages, Salaries and other forms of
employee compensation constitute a
very large component of operating cost.
• It is one of the biggest factor
influencing industrial relations.

3. • It is means to attract and retain
qualified and motivated employees.
• It provides sense of recognition and
determines their social status.
• It is two type:
– Base or Primary compensation
– Supplementary Compensation

4. Acts Related to wages
• India aims at rapid economic growth,
industrial peace, price stability,
equitable distribution of income and
progressively rising standard of living
for the working class.
• In order to realise these the govt: of
India regulates wage rates through
the following methods

5. The Minimum Wages Act, 1948
• The govt. realised that wages in “sweated” trades
cannot be left to be determined on the basis of
free play of demand and supply.
• Therefore the govt. prescribes minimum rates of
wages in certain sweated or unorganised
employments specified under The Minimum Wages
Act.
• The minimum wage can be fixed by hour, day,
month or such other long period.

6. • The real aim of the Minimum wages Act is
to prevent exploitation of labour through
payment of unduly low wages.
• But the implementation of the act is not
satisfactory.
• Minimum wages have not been reviewed
and revised for periods longer than five
years thereby leading to decline in real
wages due to inflation.

7. The Payment of Wages Act 1936
• The main object of the act is to ensure
regular and prompt payment of wages and
to prevent unauthorised deductions and
arbitrary fines from wages. It also
regulates the rate of payment for
overtime work
• The act is applicable to persons employed
in factories/industrial establishments and
drawing less than the specified pay.

8. The Equal Remuneration Act
1976
• The main object of this act is to prevent
discrimination in remuneration on the basis
of sex.
• It is the duty of the employer to pay equal
remuneration to men and women workers
for the same work or work of a similar
nature.
• No discrimination is to be made against
women in recruitment and in conditions of
service.

9. Companies Act (Sec 529-A)
• This Sec. aims to protect workers claim
in the events of insolvency of their
employer.
• In case of winding up of a company
worker’s dues are to be paid in priority
all other debts in full.

10. The Industrial Disputes Act 1947
• Under this act conciliation is compulsory in
all wage disputes in public utility services
and optimal in other industrial
establishments.
• It also empowers the appropriate govt. to
constitute one or more industrial Tribunal
or National tribunals and to refer a wage
dispute to these Tribunals for adjudication

11. Key Points
• Compensation
• The Minimum Wages Act, 1948
• The Payment of Wages Act 1936
• The Equal Remuneration Act 1976
• Companies Act (Sec 529-A)
• The Industrial Disputes Act 1947

12. SubhamSubham
Ambadi.SAmbadi.S