The correct answer is Minimum Wage

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

Other Types of wages:

• 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 the specific community. In addition to bare necessities, it includes education, health, insurance, etc.
• Fair Wage: This wage is a mean between the Living Wage and the Minimum Wage.
• Starvation Wage: This refers to wages that are sufficient to provide the ordinary necessities of life.

 Important Features of the Minimum Wages Act

• The Act gives effect to the provisions of the Directive Principle as provided under Article 43 of the Indian constitution.
• The act lays down the principles for fixation of

1. A minimum time rate of wages.
2. A minimum piece rate.
3. A guaranteed time rate.
4. An overtime rate for different occupations.

• Permanent employees, contract workers, casual workers, trainees, and people on probation are covered under the act.
• It requires that the wages shall be paid in cash.
• The appropriate government may appoint committees or subcommittees for fixing minimum rates of wages.
• The appropriate government here is

1. In relation to Schedule employment by Central Government or Railways or establishment under the central act, it’s Central Government.
2. In all other cases, it's State Government.

• The appropriate government shall appoint an advisory board to coordinate the work of committees and subcommittees and advise in matters related to the minimum rates of wages.
• There is a provision of appointing a central advisory board to coordinate the works of advisory boards and to advise the central and state government regarding the fixation and revision of rates of wages.
• The establishments covered under this act are required to maintain registers and records in a prescribed manner.
• It empowers the appropriate government to appoint Inspectors with powers of inspection, examination, seizure in case of any offence.
• Authorities empowered to hear and decide the claims related to the various aspects of the minimum rates of wages are

1. Commissioner for workmen’s compensation.
2. Labour Commissioner.
3. Judge of civil court or Judicial Magistrate.

• If the claim is related to payment of wages below the minimum wage, the authority may direct for the payment of due together with the amount of compensation not exceeding ten times the amount of due.
• Any act of violation or contravention is punishable with a maximum imprisonment of six months or a fine of five hundred rupees.
• Any contract or agreement, which gives up or reduces the right to a minimum rate of wages, shall be null and void.