WAGE SYSTEM: A BALANCED APPROACH - Chanukya's way

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WAGE SYSTEM: A BALANCED APPROACH

 

For Kautilya, the subjects and their welfare was more important than kingship.

Every idea in the Arthashastra is directed towards this end. Thus every CEO has

to take into consideration the welfare of his employees first, which will

ultimately be his own benefit.

The Arthashastra clearly shows that Kautilya had a vision for the Welfare of the

society,

 

 

" In the happiness of the subjects lies the benefit of the king and in what is

beneficial to the subjects is his own benefit " (1.19.34)

 

 

Arthashastra evolved a wage structure, which provides the protection of workers

against exploitation or unduly low wages and also to facilitate justice and

fairness for the sound relationship between the employer and the employee.

 

CONSIDERATION OF EMPLOYEES

 

What had been visualized by Kautilya in 3 B.C. found its way in the Minimum

wages act of 1948. It recognizes that wages cannot be left to be fixed by market

forces of supply and demand alone. Workers also had a choice to choose their

work and enter into a contract before starting any work.

 

If the employee gets sick he is also given due consideration,

 

" If he is incapable due to ill health or due to a calamity, he shall get an

extension " (3.14.2)

 

 

Whatever salary was fixed for labourers, the master was obliged to pay it, and

in case the rule was violated, he had to undergo punishment,

 

 

" In case of Non Payment of the wage, the fine is twelve panas or five times the

wage " (3.13.34)

 

 

 

CONSIDERATION OF EMPLOYERS

 

 

However, the wage structure was not a one sided approach. The employer's efforts

were also safe guarded. Productivity of the workers was taken into consideration

while paying wages,

 

" A wage is for work done, not for what is not done " (3.14.8)

 

According to Kautilya if the labourer after receiving the wages, did not

complete his work he was fined,

 

" An employee not doing the work after receiving the wage, the fine is twelve

panas, and detention till it is done " (3.14.1)

 

If the employee did not return to his work, the master was at liberty to engage

another worker,

 

" In case the employee misses the time (or completion) or does the work in a

wrong manner, he may complete the work through another " (3.14.10-14)

 

DECIDING A FAIR WAGE

 

But how do we decide what is the correct wage? For this, we will have to meet

the current industry standards and also consider the time and effort that is put

in a work,

 

" The payment of the wages was decided on the basis of work done, time spent in

doing it, at the rate prevailing at the time " (3.13.27)

 

This concept has been adopted by the committee of Fair wages, Govt of India, set

up in 1949 which prescribed,

 

" The prevailing rates of wages in the same or similar occupations in the same or

neighbouring localities " (Report of the Committee of fair Wages, Delhi, 1954)