Answers:
Wage policy in India
The plans of wages in India are explained as follows:
The first plan (1951 to 1956) suggested that pre-war levels of real wages should be restored as an initial march towards “living wage” by use of enhanced productivity. It further suggested various measures for making wage adjustments like reduction of disparities in income, reduction of gap between the current and living wages, maintenance and standardisation of wage differentials to provide incentives.
The second plan (1956 to 1961) stressed improvement in wages through increased productivity stemming from efficiency on the part of the workers, improved layout of plants and improvement in management practices.
The third plan (1961 to 1966) reinforced the wage policy of the preceding two plans with respect to minimum wage fixation, reduction of disparities and wage differentials and stressed the role of productivity in raising the living standard of the workers.
The fourth plan (1969 to 1974) did not provide a fresh direction or any shift of the Government’s wage policy.
The fifth plan (1974 to 1979) recommended that the reward structure of the industrial employees in terms of wage and non-wage benefits must be related to performance records in industrial enterprises. It was necessary to build over a period of time a national wage structure to narrow down disparities within the organised sector itself, including both public and private sectors.
The sixth plan (1980 to 1985) pointed out that there were clear variations with respect to wages between the organised, unorganised, and urban and rural sectors. The differences and inequalities have resulted in social tensions and industrial unrest.