WAGE BOARD STRUCTURE, SCOPE, FUNCTION & PAY COMMISSION
Institutions Related to Compensation
(Private sector)
Wage Board
Pay Commissions
(Public sector)
WHAT IS WAGE BOARD?
A committee who determines the fair wages.
Based on industry cum region.
To provide better climate for industrial relation. To standardize wage structure in the industry. In accordance with the social & economic policy of the government.
Tripartite in nature.
STRUCTURE OF WAGE BOARD.
SCOPE OF WAGE BOARD.
Improve conditions for better industrial relations in the country.
SCOPE OF WAGE BOARD.
Standardize wage structure uniformly across a given industry.
SCOPE OF WAGE BOARD.
Pave the way for wage settlement in consonance of social & economic policies.
FUNCTION OF WAGE BOARD.
To determine the wages payable to employees. The appropriate government or the organizations of employers and employees by mutual agreement. Determination of other matters regarding disputes between two parties
PAY COMMISSION
It is an administrative system/mechanism. Set up by the Government of India to determine the salaries of government employees.
Till now six pay commissions have been set up First pay commission - 1947 Second pay commission- 1959 Third pay commission 1973 Fourth pay commission 1984 Fifth pay commission 1996 Sixth pay commission 2008
FIRST PAY COMMISSION
Influence of the law of demand & supply should be considered in fixing the salaries of public servants. Salary proposed should balance the interests of the
Employee Employer Public
Employee must be paid a living wage i.e. minimum wage. Dearness Allowances to be paid to prevent economic hardships.
Cluster-V.pdf
SECOND PAY COMMISSION
Concept of living wage was extended to the matter of social policy. Minimum wages should deal not only economic considerations but also offer social justice.
Lowest rate of remuneration should not be lower than a living wage & the highest salary should be consistent enough to attract employees and maintain efficiency.
THIRD PAY COMMISSION
Criteria of a sound pay system: Inclusiveness Comprehensibility Adequacy
No consideration that the Government should be a model employer.
Dearness allowances to be treated as part & parcel of the compensation structure.
FOURTH PAY COMMISSION
Focus on criteria for fixing pay levels and structures . Concluded that market comparison cannot be relied upon . The government should pay fair wages to the public servants. Dearness allowances to be treated as part & parcel of the compensation structure.
FOURTH PAY COMMISSION
Full neutralization of rise in cost of living should be paid @ - 80% to employees drawing basic pay upto Rs. 3,500/month,
- 75% to employees drawing basic pay between Rs. 3,500 & Rs. 6000/month, - 65% to employees drawing basic pay above Rs. 6,000/month.
FIFTH PAY COMMISSION
Pay revision based on work organization & manpower planning. 40% increase in pay with 30% reduction in manpower over a three year period.
Emphasized on new means of recruitment.
Focused on bringing about innovation in training, performance appraisal, etc. of the government employees.
SIXTH PAY COMMISSION
The appointment of the Sixth Pay Commission comprises the following:
Chairman Member
Mr. Justice B.N.Srikrishna Prof. Ravindra Dholakia
Member
Member-Secretary
Mr. J.S.Mathur
Smt. Sushama Nath
SIXTH PAY COMMISSION
To govern the structure of pay etc. for the following:
Central govt. employees Personnel belonging to All India Services Personnel belonging to Armed Forces Personnel to the Union Territories Officers & employees of the Indian Audit & Accounts Department Members of regulatory bodies set up under Acts of Parliament.
To transform the Central Government organizations to modern, professional entities.
SIXTH PAY COMMISSION
To work out a comprehensive pay package for all the categories of employees. To harmonize the functioning of the Central Govt. organizations.
To examine the principles which should govern the structure of pension, death-cum-retirement gratuity etc.
To make recommendations as to which principles should be used to govern the bonuses etc. To examine the desirability & the need to sanction any interim relief.
PAY FIXATION.htm
