Human Resources/WAGES AND SALARY ADMINISTRATION
Discuss with valid reasons why there are wage disparities between the same jobs of Central Government and State Government. Give suggestions to remove such disparities
10.Discuss with valid reasons why there are wage disparities between the same jobs of central government and state government. Give suggestions to remove such disparities.
Fixation and revision of minimum wages[
The Minimum Wages Act, 1948 generally specifies minimum wage rates on a per day basis, and extends to the entire country and is revised within a period of not less than five years, however there is a provision to increase dearness allowance every two years. The norms in fixing and revision of minimum wages were first recommended by ILC, 1957.
Revision of minimum wage rates is based on a 'cost of living index' and wages can be fixed for an entire state, part of the state, class or classes and employments pertaining to these categories. The fixation of wages is based on the norms mentioned and a wage board (different for different industry).
Under the Minimum Wages Act, State and Central Governments have the power to fix and revise minimum wages. The act specifies that the "appropriate" government should fix the wages i.e. if the wages to be fixed are in relation to any authority of Central government or Railway administration then the Central government fixes it. However if the wage rate is to be fixed or revised for a scheduled employment, the respective state governments fix it. The Centre fixes the National floor level Minimum Wage that is lower than most states' respective minimum wages. The ambiguity and overlap in the jurisdiction of both these tiers of government have caused debates and controversies. One of such debates revolves around fixing wage rates of MGNREGA scheme, an employment guarantee initiative by the Central Government
As per Section 5 of the Minimum Wages Act, 1948, there are two ways of fixing and/or revising minimum wages • Committee Method: Committees and Sub-committees are set up to make recommendations or create inquiries. • Notification Method: The government publishes proposals and an official date in the Official Gazette. All advice and recommendations form various committees and sub-committees as well as representations are collected before the specified official date and the government then proceeds to fix/revise minimum wages.
The Act provides for fixing wage rate (time, piece, guaranteed time, overtime) for any industry that has at least 1000 workers.
1) While fixing hours for a normal working day as per the act should make sure of the following:
• The number of hours that are to be fixed for a normal working day should have one or more intervals/breaks included.
• At least one day off from an entire week should be given to the employee for rest.
• Payment for the day decided to be given for rest should be paid at a rate not less than the overtime rate.
2) If an employee is involved in work that categorises his service in two or more scheduled employments, the employee’s wage will include respective wage rate of all work for the number of hours dedicated at each task.
3) It is mandatory for the employer to maintain records of all employee’s work, wages and receipts .
4) Appropriate governments will define and assign the task of inspection and appoint inspectors for the same.
Officers of Central Industrial relations Machinery looks after the enforcement of provisions of the Minimum Wages Act in the Central Sphere. Whereas the responsibility to enforce the act elsewhere lies with respective State Governments/Union Territories.
Minimum wage rates[
The table below summarises minimum wages across states. All states specify different minimum wages for different occupations and skill levels within those occupations. Except for Andaman and Nicobar, no state makes variations in wage rates across districts. The table below briefly shows if the states account for Variable Dearness Allowance (VDA) that are linked and fixed according to a cost of living index (CPI in case of India), the range of minimum wages, and when these wages were last updated/revised. The period within which minimum wages are revised is different for different states. Some states revise their respective minimum wage rates every six months while some do so in 5 years. This anomaly reflects how in some cases minimum wage rates are as low as INR 38/day.
CENTRAL GOVT AND STATE GOVTS SHOULD JOINTLY APPOINT A COMMON COMMITTEE EMPOWERED TO MAKE A DECISION.