This is that level of wage which in any case, must be paid irrespective of the extent of profits, the financial conditions of the establishment, or the availability or workmen on lower wages. A minimum must provide not merely for the bare subsistence of life but for the preservation of the efficiency of the worker.
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It must also provide for some measure of education, meet medical requirements and amenities. It is independent of the kind of industry and applies to all alike. It sets the lowest limit below which, wages cannot be allowed to sink in all humanity.
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No industry has right to exist unless it is able to pay its workmen at least a bare minimum wage. Even if labour is available at starvation wages, it should not be encouraged.
Following norms should be followed as guide by all wage fixation authorities:
(a) Standard Working Class Family:
Standard working class family should be taken to consist of three units per earner. Three adults supported by single earner. (Disregard earnings of children, women and adolescents.)
(b) Food:
Minimum daily Intake 2700 calories per adult engaged in modern activity to include 17 ounces cereal, 10 ounces vegetable, few of milk/meat and sugar.
(c) Clothing:
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18 yards per capita per annum (72 yards total for workers’ family of four).
(d) House:
Government house rent at subsidised rate for Government Industrial Housing Scheme for Low Income Group.
(e) Miscellanious:
20% of total minimum wage for expenses on light, fuel, miscellanous items of expenditure.
(f) Additional Component:
By the Supreme Court ruling in 1991, festivals, marriages, ceremonies plus children education, medical, minimum recreation, old age provision expense (upto 25% of total) was added to the concept of minimum wage.