Types of Wages ★ Minimum Wage: International Labour Organisat | UPSC Notes EPFO Labour Law

Types of Wages

★ Minimum Wage: International Labour Organisation defines it as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”.
The minimum wage includes the bare needs of life like food, shelter, and clothing.

★ Living Wage: It is the wage needed to provide the minimum income necessary to pay for basic needs based on the cost of living in a specific community.
In addition to bare needs, a ‘living wage’ includes education, health, insurance, etc.

★ Fair Wage: A ‘fair wage’ is a mean between ‘living wage’ and ‘minimum wage’.

★ Starvation Wage: It refers to the wages which are insufficient to provide the ordinary necessities of life.