2. Minimum wages
• Minimum living cost
• It means minimum level of subsistence Which includes
food,clothing, shelter
• Fixed by the government In consultation with business
organisation and trade unions
• Minimum wages Fixation – State & central government
3. Living wages
• step higher than fair step
• Living wage has been defined differently by different people in different
countries
• It based on general economic conditions for country
• It is not only for clothing and shelter but also for some furgal comfort of
the life
• => Good education for children
• => Protection against ill-health
• => Requirement of essential social needs
• => Measures of insurance against old age
4. Fair wages
• It means something more than minimum wage
• It is a mean between the minimum wage and living
wage
• Upper limit is capacity of the industry to pay fair wage
compares reasonable with the average payment of
similar task in other trades are occupations requiring
the same amount of liability
• It depends upon the present economic position as well
as on his future prospects
5. It depends upon following factors
• Minimum wage
• Capacity of the industry to pay
• Prevailing rates of wages in the same or similar
occupations in the same or neighbouring localities
• Productivity of labour
• Level of national income and its distribution
• The place of the industry in economy of country
