How is the minimum wage fixed under the minimum wages act of 1948?

Answer 1

The manner in which minimum wages are fixed under Minimum Wages Act

According to section 3 of MWA(1948)

a) Different minimum rates of wages may be fixed for

1) Different scheduled employment

2) Different classes of work in the same schedule of employment

3) Adults, adolescents and apprentices

4) Different localities

b) Minimum rates of wages may be fixed by any one or more of the wage period1) by the hour

c) By the day

d) By the month

e) By such other larger wage period

Any minium

In public policy, a living wage is the minimum hourly income necessary for a worker to meet basic needs (for an extended period of time or for a lifetime). These needs include shelter (housing) and other incidentals such as clothing and nutrition. In some nations such as the United Kingdom and Switzerland, this standard generally means that a person working forty hours a week, with no additional income, should be able to afford a specified quality or quantity of housing, food, utilities, transport, health care, and recreation. In addition to this definition, living wage activists further define "living wage" as the wage equivalent to the poverty line for a family of four.

The living wage differs from the minimum wage in that the latter is set by law and can fail to meet the requirements of a living wage - or is so low that borrowing or application for top-up benefits is necessary. It differs somewhat from basic needs in that the basic needs model usually measures a minimum level of consumption, without regard for the source of the income.

The ILO uses various criteria to recommend minimum wage levels: the needs of workers and their families, the general level of wages in a county, the cost of living, social security benefits, the relative living standards of social groups and economic factors such as economic development and employment maintenance. The living wage focuses more on the needs of worker units, social security benefits and cost of living.

Living wage and minimum wage are two different things. Living wage is defined by the wage that needs to be met that can meet the basic needs to maintain a safe decent standard of living the their community and have the ability to save for future needs and goals.[1] To meet living wage people need to make about $12.50 an hour. Currently the minimum wage across the US is $7.25, which is well below living wage. In 1990 the first living wage campaigns were launched by community initiatives in US addressing increasing poverty faced by workers and their families. They argued that employee, employer, and the community win with a living wage. Employees would be more will work helping the employer reduce worked turnover ratio and it would help the community when the citizens have enough to have a decent life.[2]

Poverty threshold is the income necessary for a household to be able to consume a low cost, nutritious diet and purchase non-food necessities in a given country. Poverty lines and living wages are measured differently. Poverty lines are measured by household units and living wage is based on individual workers.

A related concept is that of a family wage - one sufficient to not only support oneself, but also to raise a family.