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The term wage policy here refers to 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.
3. Wage boards.
1. Minimum Wages:
In order to prescribe the minimum rate of wages, the Minimum Wages Act, 1948 was
passed. The Act empowers the government to fix minimum rates of wages in respect
of certain sweated and unorganised employments. It also provides for the review of
these wages at intervals not exceeding 5 years.
3. Wage Boards:
A wage board is a tripartite body with representatives of management and workers,
presided over by a government nominated chairman who can act as an umpire in the
event of disagreement among the parties.
Technically, a wage board can make only recommendations, since there is no legal
sanction for it, but for all practical purposes, they are awards which if made
unanimously, are considered binding upon employers.