Types of Wages / Wage Structure
The important types of wages are as follows:
Minimum wage is the minimum payment to workers. So, that the may be able to in providing for basic needs for himself and his family members and to maintain his work efficiently. A minimum wage is one which has to be paid by an employer to his workers irrespective of his ability to pay.
According to fair wages committee 1948, “minimum wage is the wage which must provide not only for the bare sustenance of life, but for the ‘preservation of the efficiency of the workers. for this purpose, minimum wage must provide some measure of education,medical requirements and amenities”.
according to the committee on Fair Wage,1948, “Fair wage is the wage which is above the minimum wage but, below the living wage. The lower limit of the fair wage is obviously the minimum wage, the upper limit is to be set by the capacity of the industry to pay”. Thus, fair wage are rates paid to the workers of some status in the organizations of the same type and of nearby areas.
Real wages refers to the purchasing power of money wages. It represents the actual exchange value of wage rates. It reflects an adjustment to changes in the price level based on price indices.
Money wages refers to the monetary form of wage payment. Normally the wages earned by employees are expressed in terms of money. Money wages, however, do not express real or intrinsic price of any work unless we know what the wages can buy. Thus, they do not express the real worth of job. They only express the amount in terms of currency. The real wages give the actual worth of the amount.
According to committee on fair wage,1948, “A living wage is one which should enable the earner to provide for himself and his family not only the bare essentials of food, clothing and shelter but, a measure of frugal comfort,including education for his children, protection against ill-health, requirements of essential social needs and a measure of insurance against the more important misfortunes, including old age”. Thus, living wage means the wage that may be sufficient to provide for the bare necessities as well as certain amenities for the employees.