Wages and Bonus: Minimum Wages, Payment of Wages, Equal Remuneration and Payment of Bonus (Basics) Questions

Question 1

Define minimum wages. (concept)

Accepted Answer

**Minimum wages** are the minimum rates of wages fixed by the State for specified employment to prevent exploitation and ensure basic livelihood (concept).

Question 2

State one objective of minimum wage legislation.

Accepted Answer

To prevent worker **exploitation** and ensure a minimum standard of living (concept).

Question 3

Equal remuneration means equal pay for men and women for same/similar work. (True/False)

Accepted Answer

True. **Equal remuneration** requires equal pay for same work or work of similar nature irrespective of gender (concept).

Question 4

State one key idea under payment of wages laws (concept).

Accepted Answer

**Timely payment** of wages and allowing only lawful **deductions** (concept).

Question 5

Give one example of authorized wage deduction.

Accepted Answer

**PF contribution** (or income tax) (concept).

Question 6

Define bonus (concept).

Accepted Answer

**Bonus** is additional payment over and above wages/salary, linked to profits/productivity or statutory provisions (concept).

Question 7

List any three factors for fixing/revising minimum wages (points).

Accepted Answer

Any three factors (concept):

- **cost of living** / inflation (CPI)
- nature of work and skill level (concept)
- prevailing wage rates in similar employment
- region/industry capacity to pay (concept)
- productivity and employment conditions (concept)

Any three points are sufficient.

Question 8

Differentiate authorized and unauthorized deductions using a small table (brief).

Accepted Answer

Authorized vs unauthorized deductions (concept):

| Point | **Authorized** | Unauthorized |
|---|---|---|
| Basis | permitted by law/contract (concept) | arbitrary/not permitted |
| Examples | **PF**, income tax (concept) | penalty without basis, forced charges |
| Control | must be recorded and within limits (concept) | should not be made |

Thus, only lawful and transparent deductions are allowed (concept).

Question 9

Explain equal pay for equal work (concept) using a table of conditions.

Accepted Answer

Equal pay for equal work (concept) means equal remuneration for the same/similar work.

| Condition | What to check (concept) |
|---|---|
| **Work similarity** | similar skill, effort, responsibility |
| **Working conditions** | similar environment and hazards |
| Non-discrimination | pay difference must be based on valid factors, not gender (concept) |

If conditions are similar, wages should be equal regardless of gender (concept).

Question 10

List any three compliance points for wage and bonus management (points/table).

Accepted Answer

Compliance points (any three) (concept):

- pay not less than **minimum wages** notified
- ensure **timely payment** of wages (concept)
- allow only authorized **deductions** with proper records
- ensure **equal remuneration** for same/similar work
- compute and pay **bonus** as applicable and maintain registers/records (concept)

Any three points are sufficient.

Question 11

Explain the purpose of minimum wages and mention any two benefits to workers/society (use points/table).

Accepted Answer

Purpose of **minimum wages** (concept): to prevent exploitation and ensure basic livelihood.

Benefits (any two) (concept):
- improves **income security** and reduces extreme wage exploitation
- supports dignity of labour and basic standard of living (concept)
- reduces wage inequality and supports social justice (concept)

Any two benefits are sufficient.

Question 12

Differentiate wages and bonus (concept) using a small table and give one example of each.

Accepted Answer

Wages vs bonus (concept):

| Item | **Wages** | **Bonus** |
|---|---|---|
| Meaning | regular remuneration for work | additional payment over wages (concept) |
| Frequency | regular/periodic | periodic/annual/incentive-based (concept) |
| Example | basic pay + DA | statutory bonus / productivity bonus |

Thus, wages are the main pay; bonus is extra payment (concept).

Question 13

Write an exam-style note on minimum wages: meaning, objectives and factors (include a table and conclusion).

Accepted Answer

### Meaning
**Minimum wages** are the legally fixed minimum rates payable for specified employment to prevent exploitation and ensure a basic standard of living (concept).

### Objectives (any 3)
- prevent **exploitation** due to weak bargaining power (concept)
- ensure basic livelihood and dignity
- reduce wage inequality and promote social justice (concept)

### Factors (table)
| Factor | Why it matters (concept) |
|---|---|
| **Cost of living** | wages must match inflation and basic needs |
| Nature/skill of work | higher skill/responsibility may require higher rate (concept) |
| Regional/industry conditions | capacity to pay and prevailing wages (concept) |

### Conclusion
Minimum wage fixation balances worker welfare with economic realities and supports fair labour standards (concept).

Question 14

Explain payment of wages: importance of timely payment and deductions control (exam-style) using a table and conclusion.

Accepted Answer

### Importance (concept)
Payment of wages provisions ensure workers receive wages **on time** and are protected from arbitrary deductions.

### Key controls (table)
| Area | What the law aims to ensure (concept) |
|---|---|
| **Timely payment** | wages are not delayed and are paid in prescribed manner |
| **Deductions** | only authorized deductions; recorded and within limits (concept) |
| Transparency | worker can understand wage computation and deductions (concept) |

### Conclusion
Timely payment plus lawful deductions promotes fairness, reduces disputes, and supports stable industrial relations (concept).

Question 15

Explain equal remuneration (concept): meaning, importance, and how an employer can ensure compliance (exam-style) using a flow/table and conclusion.

Accepted Answer

### Meaning
**Equal remuneration** means equal pay to men and women for the same work or work of similar nature (concept).

### Importance
- prevents wage discrimination and supports equality (concept)
- improves morale and fairness

### Compliance approach (flow)
Identify comparable roles → check similarity (skill/effort/responsibility/conditions) → ensure equal wage structure → document rationale for any differences → periodic audits and grievance handling (concept)

| Compliance step | Action (concept) |
|---|---|
| **Job evaluation** | assess similarity of work objectively |
| Pay structure review | remove gender-based differentials (concept) |
| Documentation | maintain records and policy communication |

### Conclusion
Compliance requires objective job evaluation, transparent pay structures and regular review to avoid discriminatory wage practices (concept).

Wages and Bonus: Minimum Wages, Payment of Wages, Equal Remuneration and Payment of Bonus (Basics)

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