The document discusses the need for a national wage policy in India. It notes that while minimum wage legislation exists, wage fixation is done at the state level, and execution of minimum wages faces many issues. The Second National Commission on Labour recommended appointing an expert committee to analyze all factors and set a national wage policy. The objectives of a national wage policy would be to ensure minimum wages allow meeting basic needs across regions and sectors, maximize employment opportunities, eliminate poverty, reduce wage differentials, standardize wages in similar industries, and link wage increases to productivity increases. Revision of wages should be higher than GDP growth but lower than inflation to maintain real wages while allowing some return to the economy.

1. NATIONAL
WAGE POLICY

2. Introduction
▪ The wage policy in India is always a contradictory issue.
▪ Even many critics stated that the wage policy in India is equal
to not having wage policy.
▪ The Second National Commission on labour suggested the
appointment of a high-level committee comprising of
technically skilled people such as economists, consumers,
trade unionists, entrepreneurs and establishments to carry out
analysis of all the interrelated aspects concerning wage policy
and to set a national wage policy.
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3. Introduction
▪ As proportion of workforce in wage employment is just 15 percent and it is
difficult for government to have control on incomes and prices, wage
policies become ineffective.
▪ Though salaried people pay taxes, it is not possible for government to levy
tax on agricultural income and income earned from non-salaried sources.
▪ At the central level, minimum wage legislation is made but wage fixation is
done at the state level by tripartite committees. Execution of minimum
wages involves many faults.
▪ The first National Commission on labour declared that it is impractical and
undesirable to have a National minimum wage which considers the pay of
poor region.
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4. Introduction
▪ Whereas the Second National Commission on labour suggests
that an expert committee must involve in this matter.
▪ Bhoothalingam who was the head of the Study Group wages,
incomes and prices declared that national minimum wage must
be compatible with factors such as,
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5. Introduction
a) Adjusted per capita national income
b) Average national income for one consumption limit, and
c) Per capita rural consumption expenditure.
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6. OBJECTIVES OF
NATIONAL WAGE POLICY
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7. The objectives/purposes of national wage policy are,
▪ 1. To make sure that irrespective of any region or sector
employee will get minimum wage to meet their minimum
necessities of life.
▪ 2. To grab maximum employment opportunities.
▪ 3. To achieve the goal of total anti-poverty program i.e.,
eliminating poverty of the bottom classes of society by using
employment at wage level which removes poverty.
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8. The objectives/purposes of national wage policy are,
▪ 4. To eradicate differentials in wages of organized sector
workers and between workers of organized and unorganized
sectors.
▪ 5. To standardize wage in similar industry.
▪ 6. To make sure that atleast minimum income is given to the
workers in unorganized sector.
▪ 7. To link increase in wage with increase in productivity.
▪ 8. To have a machinery to enforce wages, incomes and price
policy.
▪ 9. To decide wages both in organized and unorganized sector.
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9. The wage revision
▪ The wage revision should be more compared to increase in
growth rate of GDP and should be less than inflation rate. This
kind of revision make sure that real wages are maintained and
economy can earn something back in the form of tax. This
practice is possible only in countries such as Japan and
Singapore where increase in inflation rate is less than increase
in GDP rate.
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10. THANKS!
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