State regulation of minimum wages

The purpose of this study is to examine, with special reference to minimum rates for low-paid labour, the methods and principles of state regulation of wages adopted in different countries and then to consider how far they can be applied in India. It is now more than half a century since the state first took steps to regulate wages in the interest of workers, although state intervention in the domain of wages goes as far back as 1351 in England. The Statute of Labourers passed by Parliament in 1351 fixed minimum wages in certain crafts and industries. This measure was hostile to, rather than in the interest of, the workers. However,
since the early part of the nineteenth century, on account of the economic changes created by the industrial revolution, workers in various lands have agitated for the fixation of minimum wages. The first step in this direction was taken in Australasia in 1896. Since then many countries have passed minimum wage legislation. The principle of fixing a 'minimum' or 'basic wage' less than which no worker shall be paid and thus protecting unorganised and 'sweated' workers has been accepted by most countries. In India till lately, the doctrine of laissez [aire in the fixation of wages prevailed. Some attempt is now being made by the Government to interfere in the realm of wages. The methods and policy which should be followed by the Government for regulating wages are, therefore, important questions which it will have to tackle. In these circumstances the experience of other countries in this field is of immense help. Pitfalls which have been found by some countries have to be avoided and a policy on sound lines has to be formulated.