1. MEANING OF WAGE/ COMPENSATION PAYMENT:
Wage is a monetary payment made by the employer to his employee for the work done or services rendered. It is a monetary compensation for the services rendered . A worker may be paid Rs. 100 per day or Rs. 4500 per month. This is wage payment. The worker gives his services and takes payment called wage payment. Industrial workers are paid remuneration for their services in terms of money called wage payment. Wages are usually paid in cash at the end of one day, one month or one week. Money wage is the monetary compensation or price paid by the employer to his employee for the services rendered. Such compensation is also called wage or salary or reward given by an organisation to a person in return to a work done. Generally, compensation payable to an employee includes the following three components: ❖ Basic compensation for the job (wage/salary)
❖ Incentive compensation for the employee on job
❖ Supplementary compensation paid to employees (fringe benefit and employee services)
All the * marked references, taken from the individual website or from the books are given at the end in Bibliography.
1.1 IMPORTANCE OF WAGE PAYMENT:
Wage payment  is important to all categories of workers. Wage is a matter of life and death to workers/employees. Their life, welfare and even social status depend on wage payment. It is only source of income to large majority of workers. They and their unions always demand higher wages and other monetary benefits. Majority of labour problems and disputes are directly related to wage payment. The efficiency of workers and their interest and involvement in the work depend on wage payment. Even their attitude towards employer depends on wage payment. In brief, wage payment is a matter of greatest importance to workers. Wage problem is the most pressing and persistent problem before the entire labour force. . To employer:
Wage payment is equally important to employers as their profit depend on the total wage bill. An employer in general is interested in paying low wages and thereby controls the cost of production. However, low wages are not necessarily economical. In fact they may prove to be too costly to the employer in the long run. E.g. In garment manufacturing company if tailors are not paid properly then it is difficult for the company to retain them. An employer has a moral and social responsibility to pay fair wages to his worker as they are equal partners in the production process. He should give fair wages which will benefit to both the parties. Employees will offer full co-operation to the management when they are paid attractive wages. On the other hand, strikes and disputes are likely to develop when workers are paid low wages or when they are dissatisfied and angry due to low wage rates. It is possible to earn more profit by paying attractive wages to workers. E.g. Reliance, Citi Bank, Motorola are earned huge profits because of their higher pay packages.
Government also give special importance and attention to wages paid to industrial workers as industrial development, productivity, industrial peace and cordial labour- management relation depend on the wage payment to workers . Government desires to give protection to the working class and for this minimum wages act and other Acts are made. In India, wages are now link with the cost of living. This is for the protection of workers. Government is the biggest employer in India and the wage rates of government servant and employees of public sector organisations are decided by government only. Revision of pay scale of government employees made for adjusting their wages as per the cost of living. For this, “Pay Commission” is appointed and pay scale is adjusted as per the recommendations made.