Volume : 1, Issue : 1, June - 2012

NATIONAL WAGE POLICY VIZ–A–VIZ CORRELATION BETWEEN WAGES, PRICE AND TAX

Manish Pawar, Dr. Ashok Pawar

Abstract :

The term ‘wage policy’ refers to the legislation or Government action undertaken to regulate the level or structure of wages, or both, for the purpose of achieving specific objectives of social and economic policy. The social objectives of a wage policy aim at eliminating the exceptionally low wages, establishing fair standards, protecting wage–earners from the impact of inflationary tendencies and increasing the economic welfare of the community as whole. The social and economic aspects of a wage policy are normally interrelated; measures inspired by social considerations inevitably have economic effects and are designed to achieve specific economic results. When the social and economic implications measures of wage–policy are in conflict, a choice has to be made. According to the International Labour Organisation, ‘wage policy’ means “legislation or Government action calculated to affect the level or structure of wages, or both for the purpose of attaining specific objectives of social and economic policy”. A wage policy may be viewed from three different angles. At the ‘Macro–Economic Level’, the problem is that of resolving the conflict between the objectives of an immediate rise in the standard of living of workers, additional employment and capital formation. At the ‘Semi–Aggregative Level’, the problem is that of evolving a wage structure which promotes economic development. At the ‘Plant Level’, the problem is that of a system which provides incentives for increased productivity and improved skills.