wage board

TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Sector – 9, Dwarka Institutional Area, New Delhi-75Affiliated Institution of G.G.S.IP.U, Delhi

BBAHRM (17202)

Wage Board –By: Ratika Malhotra

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

WAGE BOARDS

• Its concept came into existence during the first five year plan.

• First wage board was setup in 1957 for the textile industry.

• It helps in determining the wages of workers in different industries.

• The objective was to resolve wage disputes.


Wage Board Composition:-

• The composition of the wage boards is Tripartite i.e. it comprises of representatives from industry, trade unions and the government.

• It constitutes of an impartial Chairman, 2 other independent members and 2 or 3 representatives of workers and employers each


NATIONAL LABOUR COMMISSION IN 1969 recommended that wage board should:-

Create a climate for harmonious industrial

relations.Safeguard the interests of the community

and consumers.Device standardized wage structures for the

concerned industry.


WAGE BOARD

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

• Need-based minimum wage.• Industry’s capacity to pay.• Prevailing of Labour.• Level of national in the economy of the country.• Requirement of social justice.• Adjustment of wage differentials in such manner

as to provide incentives for skill formation.


PAY COMMISSIONS• It is the commission set up by government in order to

determine the pay structure of government employees [both central and state government]

• Pay commission covers a wide range of employees in public sector.

• There is difference between method of settlement of wage disputes available to private sector and public sector workers. methods such as collective bargaining, adjudication etc. thus for private sector workers pay commission was setup.


PAY COMMISSIONS

Pay commissions give recommendations to government and then government decide whether:-

• 1. To accept• 2. To reject• 3. To modify


PAY COMMISSIONS

• 1ST PC:- 1947It stressed that the “living wage” should form the

basis for determining minimum wage, which should be Rs. 30 for the lowest grade employees.

• 2nd PC:- 1957It visualized dearness as a desire to protect the

real wages. minimum wage should be Rs. 300.


PAY COMMISSIONS

• 3rd PC:- 1973It stressed on reduction of prevailling numerous

pay scales. It fixed the minimum wage to be Rs. 185.

• 4th PC:- 1983It was specially asked to examine the variety of

allowances and benefits in kind. And suggest their rationalisation and simplification .


PAY COMMISSIONS

• 5TH PC:- 1994Made 99 recommendations, some of which are:- Increase of lower level employees by 20 to 40 % and that

of senior level by almost 130 %.Reduction in hiring, abolishing currently vacant posts,

and restructuring government departments.six days a week instead of fiveNo. of gazatted holidays reduced to 3 from 17Maternity leave be increased to 135 daysRetirement age to be made 60 yrs.


PAY COMMISSIONS 6th PC:- 2006• Pay scales revised from 1st January 2006. Allowances like HRA, CCA,NHA,NDA etc.,

at revised rates allowed from 1st September, 2008.• To remove stagnation, Running Pay Bands for all posts in the Railways introduced

( below Rs.26,000 in V CPC scales).• Four distinct running pay bands accepted – one running band each for all

categories of employees in Group ‘C’ & ‘B’ with 2 running pay bands for Group ‘A’ posts.

• Group ‘D’ employees possessing the minimum qualification of Matric or ITI is to be placed in PB-1 pay band straightaway with grade pay of Rs.1800/-. Such of those Group ‘D’ who do not possess the said qualifications are to be upgraded and placed in the Group ‘C’ running pay band PB-1 after they are suitably re-trained.


PAY COMMISSIONS• Base year of the Consumer Price Index ( CPI) for computation of dearness

allowance is revised to 2001 from 1982.• Existing rate of HRA at 30% retained for A-1 and A Cities. B-1 & B-2 cities are

allowed 20% HRA as against 15% earlier. C and un-classified cities are given 10% HRA as against 7.5% / 5% earlier. The classification of cities are now classified as ‘X’ for A-1 & A class cities, ‘Y’ for B-1 & B-2 class cities and ‘Z’ for ‘C’ and un-classified cities.

• Maternity leave to women employees enhanced to 180 days from 135 days w.e.f 1.9.2008.

• Minimum salary at the entry level of PB-1 pay band is fixed at Rs.7000/- (Rs.5200 as pay in the pay band plus Rs.1800 as grade pay) and the maximum is Rs.90,000/- fixed ( Cabinet Secretary).

wage board

Education