Constitutional Perspectives on Wages
Objectives of the course
In this course constitutional ideals for decent wages and the judicial
interpretations of these ideals are significant areas of study. More often than
not the workers' demand for more wages leads to acute controversy. How
have the statutory and decisional laws kept up the balance in the interest of
industrial peace? Necessarily, the different facets of wages, the rationale of
wage policy perspectives constitute important components of the study. All
these problems are to be assessed in the light of the international norms laid
down by the ILO.
The following syllabus prepared with these perspectives will be
spread over a period of one year.
1. Constitutional Perspectives on Wages
1.1 The constitutional ideals: Right to work; Right to living wage;
Right to equal pay for equal work
1.2 History of Wage legislation in India: Findings of Royal
Commission on Wages 1931
1.3 Wage Concept of Minimum Wage, Living Wage, Fair Wage.
Principles governing fixation of these Wages.
1.4 Committee on Fair Wages 1949 (Recommendations)
2. Theories and Facets of Wages
2.1 Theories of wages: Wage differentials
2.2 Regulations of Payment of Wages: Safeguards against unlawful
deductions and delay in payment of wages Payment of Wages
Act, 1936. Jurisdictions, Powers of Presiding Officer, Wages
3. Facets of Wages.
3.1 Methods for wage fixation The Minimum Wages Act, 1923,
Wage Fixation through Adjudication Principles evolved by
Judiciary; Wage Fixation by Wage Boards – Principals &
Practices – Functionary & Wage Boards Critical Appraisal
3.1.1 Dearness Allowance – Concept, meaning, Evolution;
D.A. & Consumer Price Index – Controversies involved.
Imposition of ceiling limit on the Extent of
3.1.2 Bonus concept as "deferred wage", "Profit sharing"
Facets Attendance bonus, incentive bonus, Incentive
Bonus, etc. Critical Study of Payment of Bonus Act, 1965
3.1.3 Other Allowances and concessions :House rent
allowance, City compensatory allowance, Educational
allowance, Conveyance allowance, Cash incentives:
percentage on turn over, Medical allowance, Leave
travel concessions, Free and subsidized food and
products, Leave encashment, Overtime allowances, Low
wages and high perks as a camouflaging stratagem of
defeating ceiling on wages.
4. Wages, Price and Tax Correlations
4.1 Increase of wages impact on price
4.2 Increase of price impact on wages
4.3 Tax impact on price and wages
4.3.1 Taxation on goods and increase of prices
4.3.2 Taxation on wage income a cut on real wages
4.4 Wages and the consumer
5. National Wage Policy: Problem and Perspectives
5.1 National wage policy
5.2 Need for integrated approach: income, price and wage
5.3 Problems of mixed economy
5.3.1 Capital intensive sector
5.3.2 Labour intensive sector
5.4 Wages in Multi national corporations
6. International Standardization
6.1 Role of ILO: Conventions and Recommendations relating to
Theories and Facets of Wages
Facets of Wages.
Wages, Price and Tax Correlations
National Wage Policy: Problem and Perspectives